Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 26, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-34483 | ||
Entity Registrant Name | NATURE’S SUNSHINE PRODUCTS, INC. | ||
Entity Incorporation, State or Country Code | UT | ||
Entity Tax Identification Number | 87-0327982 | ||
Entity Address, Address Line One | 2901 West Bluegrass Blvd | ||
Entity Address, Address Line Two | Suite 100 | ||
Entity Address, City or Town | Lehi | ||
Entity Address, State or Province | UT | ||
Entity Address, Postal Zip Code | 84043 | ||
City Area Code | 801 | ||
Local Phone Number | 341-7900 | ||
Title of 12(b) Security | Common Stock, no par value | ||
Trading Symbol | NATR | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 89,354,621 | ||
Entity Common Stock, Shares Outstanding | 19,795,732 | ||
Documents Incorporated by Reference | Portions of the registrant’s Definitive Proxy Statement to be filed with the Securities and Exchange Commission no later than 120 days after the end of the Registrant’s year ended December 31, 2020, are incorporated by reference in Part III of this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0000275053 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 92,069 | $ 53,629 |
Accounts receivable, net of allowance for doubtful accounts of $454 and $407, respectively | 7,375 | 7,319 |
Inventories | 47,683 | 46,666 |
Prepaid expenses and other | 6,938 | 5,091 |
Total current assets | 154,065 | 112,705 |
Property, plant and equipment, net | 54,355 | 59,512 |
Operating lease right-of-use assets | 20,210 | 23,951 |
Restricted investment securities - trading | 989 | 1,150 |
Deferred income tax assets | 8,693 | 4,899 |
Other assets | 11,186 | 10,851 |
Total Assets | 249,498 | 213,068 |
Current liabilities: | ||
Accounts payable | 6,486 | 4,406 |
Accrued volume incentives and service fees | 19,481 | 18,893 |
Accrued liabilities | 31,710 | 25,531 |
Deferred revenue | 2,092 | 1,266 |
Current installments of long-term debt and revolving credit facility | 1,306 | 0 |
Related party note | 1,200 | 1,518 |
Income taxes payable | 2,387 | 1,392 |
Current portion of operating lease liabilities | 4,992 | 4,941 |
Total current liabilities | 69,654 | 57,947 |
Liability related to unrecognized tax benefits | 92 | 1,499 |
Long-term portion of operating lease liabilities | 16,412 | 20,213 |
Long-term debt and revolving credit facility | 2,418 | 0 |
Deferred compensation payable | 989 | 1,150 |
Long-term deferred income tax liabilities | 1,391 | 1,655 |
Other liabilities | 1,308 | 1,168 |
Total liabilities | 92,264 | 83,632 |
Shareholders’ equity: | ||
Common stock, no par value; 50,000 shares authorized, 19,697 and 19,410 shares issued and outstanding as of December 31, 2020, and 2019, respectively | 139,311 | 135,741 |
Retained earnings | 26,030 | 4,693 |
Noncontrolling interests | 1,848 | 227 |
Accumulated other comprehensive loss | (9,955) | (11,225) |
Total shareholders’ equity | 157,234 | 129,436 |
Total Liabilities and Shareholders' Equity | $ 249,498 | $ 213,068 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts (in dollars) | $ 454 | $ 407 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 19,697,000 | 19,410,000 |
Common stock, shares outstanding (in shares) | 19,697,000 | 19,410,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||
Net sales | $ 385,205 | $ 362,215 |
Cost of sales | (101,276) | (93,940) |
Gross profit | 283,929 | 268,275 |
Operating expenses: | ||
Volume incentives | 131,150 | 123,410 |
Selling, general and administrative | 131,297 | 128,740 |
Operating income | 21,482 | 16,125 |
Other income (expense): | ||
Interest and other income, net | 171 | 262 |
Interest expense | (102) | (43) |
Foreign exchange gains (losses), net | 1,270 | (702) |
Other income (expense), net | 1,339 | (483) |
Income from operations before provision for income taxes | 22,821 | 15,642 |
Provision (benefit) for income taxes | (137) | 8,713 |
Net income | 22,958 | 6,929 |
Net income attributable to noncontrolling interests | 1,621 | 164 |
Net income attributable to common shareholders | $ 21,337 | $ 6,765 |
Basic and diluted net income per common share | ||
Basic earnings per share attributable to common shareholders (in dollars per share) | $ 1.09 | $ 0.35 |
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 1.07 | $ 0.34 |
Weighted average basic common shares outstanding (in shares) | 19,537 | 19,314 |
Weighted average diluted common shares outstanding (in shares) | 19,968 | 19,663 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 22,958 | $ 6,929 |
Foreign currency translation gain (net of tax) | 1,270 | 477 |
Write-off of cumulative translation adjustments | 0 | (595) |
Total comprehensive income | 24,228 | 6,811 |
Net income attributable to noncontrolling interests | 1,621 | 164 |
Total comprehensive income attributable to common shareholders | $ 22,607 | $ 6,647 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Common Stock | Retained Earnings | Noncontrolling Interest | Accumulated Other Comprehensive Loss |
Balance (in shares) at Dec. 31, 2018 | 19,204,000 | ||||
Balance at Dec. 31, 2018 | $ 120,568 | $ 133,684 | $ (2,072) | $ 63 | $ (11,107) |
Increase (Decrease) in Shareholders' Equity | |||||
Share-based compensation expense | 2,120 | $ 2,120 | |||
Shares issued from the exercise of stock options and vesting of restricted stock units, net of shares exchanged for withholding tax (in shares) | 206,000 | ||||
Shares issued from the exercise of stock options and vesting of restricted stock units, net of shares exchanged for withholding tax | (63) | $ (63) | |||
Net income | 6,929 | 6,765 | 164 | ||
Other comprehensive loss | $ (118) | (118) | |||
Balance (in shares) at Dec. 31, 2019 | 19,410,000 | 19,410,000 | |||
Balance at Dec. 31, 2019 | $ 129,436 | $ 135,741 | 4,693 | 227 | (11,225) |
Increase (Decrease) in Shareholders' Equity | |||||
Share-based compensation expense | 3,787 | $ 3,787 | |||
Shares issued from the exercise of stock options and vesting of restricted stock units, net of shares exchanged for withholding tax (in shares) | 287,000 | ||||
Shares issued from the exercise of stock options and vesting of restricted stock units, net of shares exchanged for withholding tax | (217) | $ (217) | |||
Net income | 22,958 | 21,337 | 1,621 | ||
Other comprehensive loss | $ 1,270 | 1,270 | |||
Balance (in shares) at Dec. 31, 2020 | 19,697,000 | 19,697,000 | |||
Balance at Dec. 31, 2020 | $ 157,234 | $ 139,311 | $ 26,030 | $ 1,848 | $ (9,955) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 22,958 | $ 6,929 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for doubtful accounts | 77 | 10 |
Depreciation and amortization | 10,743 | 10,599 |
Noncash lease expense | 4,735 | 5,394 |
Share-based compensation expense | 3,787 | 2,120 |
Loss on sale of property and equipment | 29 | 43 |
Deferred income taxes | (4,357) | 4,279 |
Purchase of trading investment securities | (60) | (83) |
Proceeds from sale of trading investment securities | 339 | 464 |
Realized and unrealized gains on investments | (115) | (224) |
Foreign exchange (gains) losses | (1,270) | 107 |
Loss on write-off of cumulative translation adjustment | 0 | 595 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 106 | 375 |
Inventories | (154) | (4,870) |
Prepaid expenses and other | (1,762) | 1,229 |
Other assets | (55) | 475 |
Accounts payable | 2,090 | (960) |
Accrued volume incentives and service fees | 77 | (1,564) |
Accrued liabilities | 5,341 | (8,593) |
Deferred revenue | 766 | 69 |
Lease liabilities | (4,716) | (5,039) |
Income taxes payable | 671 | (1,960) |
Liability related to unrecognized tax positions | (1,407) | (693) |
Deferred compensation payable | (164) | (157) |
Net cash provided by operating activities | 37,659 | 8,545 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (4,905) | (5,104) |
Proceeds from sale of property, plant and equipment | 0 | 2 |
Net cash used in investing activities | (4,905) | (5,102) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from revolving credit facility | 0 | 2,064 |
Principal payments of revolving credit facility | 0 | (2,064) |
Proceeds from notes payable | 9,098 | 0 |
Principal payments of long-term debt | (5,374) | 0 |
Principal payments of borrowings from related party | (318) | 0 |
Proceeds from exercise of stock options | 472 | 257 |
Tax benefit from exercise of stock options | 0 | (320) |
Net cash provided by (used in) financing activities | 3,878 | (63) |
Effect of exchange rates on cash and cash equivalents | 1,808 | (389) |
Net increase in cash and cash equivalents | 38,440 | 2,991 |
Cash and cash equivalents at beginning of the year | 53,629 | 50,638 |
Cash and cash equivalents at end of the year | 92,069 | 53,629 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes, net of refunds | 4,832 | 6,861 |
Cash paid for interest | 86 | 64 |
Supplemental disclosure of noncash investing, and financing activities: | ||
Purchases of property, plant and equipment included in accounts payable and accrued liabilities | 85 | 194 |
Additions to asset retirement obligations and related assets | $ 0 | $ 649 |
NATURE OF OPERATIONS AND SIGNIF
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES | NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES Nature of Operations We are a natural health and wellness company primarily engaged in the manufacturing and direct selling of nutritional and personal care products. We are a Utah corporation with our principal place of business in Lehi, Utah, and sell our products to a sales force of independent consultants who uses the products themselves or resells them to consumers. We market our products in Austria, Belarus, Canada, China, Colombia, the Czech Republic, Denmark, the Dominican Republic, Ecuador, El Salvador, Finland, Germany, Guatemala, Honduras, Hong Kong, Iceland, Indonesia, Ireland, Italy, Japan, Kazakhstan, Latvia, Lithuania, Malaysia, Mexico, Moldova, Mongolia, the Netherlands, Norway, Panama, Poland, Russia, Singapore, Slovakia, Slovenia, South Korea, Spain, Sweden, Taiwan, Thailand, Ukraine and the United States. We also market our products though a wholesale model to Australia, Brazil, Chile, Israel, New Zealand, Norway, Peru and the United Kingdom. Principles of Consolidation The accompanying consolidated financial statements include the accounts and transactions of the Company and our subsidiaries. At December 31, 2020 and 2019, substantially all of our subsidiaries were wholly owned. Intercompany balances and transactions have been eliminated in consolidation. We consolidate the joint ventures in Hong Kong and China in our consolidated financial statements, with another party's interest presented as a noncontrolling interest. Additionally, we operate a limited number of markets in jurisdictions where local laws require the formation of a partnership with an entity domiciled in that market. These partners have no rights to participate in the sharing of revenues, profits, losses or distribution of assets upon liquidation of these partnerships. Based on materiality, Intangible Assets have been reclassified as Other Assets on the Consolidated Balance Sheets. The balances as of December 31, 2019 have been reclassified to conform to the current-year presentation. Use of Estimates The preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities, in these financial statements and accompanying notes. Actual results could differ from these estimates due to the uncertainty around the magnitude and duration of the COVID-19 pandemic, as well as other factors and those differences could have a material effect on our financial position and results of operations. The significant accounting estimates inherent in the preparation of our financial statements include estimates associated with our determination of liabilities related to independent consultant incentives, the determination of income tax assets and liabilities, certain other non-income tax and value-added tax contingencies, and legal contingencies. In addition, significant estimates form the basis for allowances with respect to inventory valuations. Various assumptions and other factors enter into the determination of these significant estimates. The process of determining significant estimates takes into account historical experience and current and expected economic conditions. Cash and Cash Equivalents We consider all highly liquid short-term investments with original maturities of three months or less to be cash equivalents. Substantially all of our cash deposits either exceed the United States federally insured limit or are located in countries that do not have government insured accounts or are subject to tax withholdings when repatriating earnings. Accounts Receivable Accounts receivable consist principally of receivables from credit card companies, arising from the sale of products to our independent consultants, and receivables from independent consultants in foreign markets. Accounts receivable have been reduced by an allowance for amounts that may be uncollectible in the future. However, due to the geographic dispersion of credit card and independent consultant receivables, the collection risk is not considered to be significant. Substantially all of the receivables from credit card companies were current as of December 31, 2020 and 2019. We maintain an allowance for potential credit losses that is based primarily on the aging category, historical trends and management’s evaluation of the financial condition of account holder. This reserve is adjusted periodically as information about specific accounts becomes available. Restricted Investment Securities We have certain restricted investment securities classified as trading securities. We maintain our trading securities portfolio to generate returns that are offset by corresponding changes in certain liabilities related to our deferred compensation plans (see Note 12). The trading securities portfolio consists of marketable securities, which are recorded at fair value and are included in long-term restricted investment securities on the consolidated balance sheets because they remain our assets until they are actually paid out to the participants. These investment securities are not available to us to fund operations as they are restricted for the payment of the deferred compensation payable. We have established a rabbi trust to finance obligations under the plan. Both realized and unrealized gains and losses on trading securities are included in interest and other income. Fair Value of Financial Instruments Our financial instruments, consisting primarily of cash and cash equivalents, accounts receivable, investments, and accounts payable, approximate fair value due to their short-term nature. The carrying value of our debt approximates fair value due to its recent acquisition and short maturity. During the years ended December 31, 2020, and 2019, we did not have any write-offs related to the remeasurement of non-financial assets at fair value on a nonrecurring basis subsequent to their initial recognition. Inventories Inventories are adjusted to lower of cost and net realizable value, using the first-in, first-out method. The components of inventory cost include raw materials, labor and overhead. To estimate any necessary adjustments, various assumptions are made in regard to excess or slow-moving inventories, non-conforming inventories, expiration dates, current and future product demand, production planning and market conditions. If future demand and market conditions are less favorable than management's assumptions, additional inventory adjustments could be required. Property, Plant and Equipment Property, plant and equipment are recorded at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Estimated useful lives for buildings range from 20 to 50 years; building improvements range from 7 to 10 years; machinery and equipment range from 2 to 10 years; computer software and hardware range from 3 to 10 years; and furniture and fixtures range from 2 to 5 years. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful lives of the related assets. Maintenance and repairs are expensed as incurred and major improvements are capitalized. Other Assets Other assets include lease deposits, deposits with third-party service providers, intangible assets, and deposits to operate in certain markets. Impairment of Long-Lived Assets We review our long-lived assets, such as property, plant and equipment and intangible assets, for impairment when events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. If an impairment indicator existed, we would use an estimate of future undiscounted net cash flows of the related assets or groups of assets over their remaining lives in measuring whether the assets were recoverable. An impairment loss would be calculated by determining the difference between the carrying values and the fair values of these assets. Incentive Trip Accrual We accrue for expenses associated with our direct sales program, which rewards independent consultants with paid attendance for incentive trips, including our conventions and meetings. Expenses associated with incentive trips are accrued over qualification periods as they are earned. We specifically analyze incentive trip accruals based on historical and current sales trends as well as contractual obligations when evaluating the adequacy of the incentive trip accrual. Actual results could generate liabilities more or less than the amounts recorded. We have accrued convention and meeting costs of $6.4 million and $5.5 million at December 31, 2020, and 2019, respectively, which are included in accrued liabilities in the consolidated balance sheets. Due to restrictions associated with COVID-19, we were unable to hold traditional incentive trips during the year ended December 31, 2020. Foreign Currency Translation The local currency of the foreign subsidiaries is used as the functional currency, except for our operations are served by a U.S. based subsidiary (for example, Russia and Ukraine). The financial statements of foreign subsidiaries where the local currency is the functional currency are translated into U.S. dollars using exchange rates in effect at year end for assets and liabilities and average exchange rates during each year for the results of operations. Adjustments resulting from translation of financial statements are reflected in accumulated other comprehensive loss, net of income taxes. Foreign currency transaction gains and losses are included in other income (expense) in the consolidated statements of operations. The functional currency in highly inflationary economies is the U.S. dollar and transactions denominated in the local currency are re-measured as if the functional currency were the U.S. dollar. The remeasurement of local currencies into U.S. dollars creates translation adjustments, which are included in the consolidated statements of operations. A country is considered to have a highly inflationary economy if it has a cumulative inflation rate of approximately 100 percent or more over a three-year period as well as other qualitative factors including historical inflation rate trends (increasing and decreasing), the capital intensiveness of the operation, and other pertinent economic factors. During the years ended December 31, 2020 and 2019, we did not operate in any countries considered to be highly inflationary. Revenue Recognition Net sales include sales of products and shipping and handling charges, net of estimates for product returns and any related sales incentives or rebates based upon historical information and current trends. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products. All revenue is recognized when we satisfy our performance obligations under the contract. We recognize revenue by transferring the promised products to the customer, with revenue recognized upon shipment, the point in time in which the customer obtains control of the products. Revenue recognition is discussed in further detail in Note 2. Advertising Costs Advertising costs are expensed as incurred and classified in selling, general and administrative expenses. Advertising expense incurred for the years ended December 31, 2020 and 2019, totaled approximately $1.8 million. Research and Development All research and development costs are expensed as incurred and classified in selling, general and administrative expense. Total research and development expenses were approximately $1.5 million and $2.1 million for the years ended December 31, 2020 and 2019, respectively. Contingencies We are involved in certain legal proceedings. When a loss is considered probable in connection with litigation or non-income tax contingencies and when such loss can be reasonably estimated, we record our best estimate within a range related to the contingency. If there is no best estimate, we record the minimum of the range. As additional information becomes available, we assess the liability related to the contingency and revise the estimates. Revisions in estimates of the liabilities could materially affect our results of operations in the period of adjustment. Our contingencies are discussed in further detail in Note 13. Income Taxes Our income tax expense includes amounts related to the United States and many foreign jurisdictions and is comprised of current year income taxes payable, changes in our deferred tax assets and liabilities and contingent reserves. Deferred tax assets are offset by a valuation allowance if it is believed to be more likely than not that some portion of the deferred tax asset will not be fully realized. Deferred income taxes arise from temporary differences between the tax and financial statement recognition of revenue and expense. In evaluating our ability to recover our deferred tax assets, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations. In projecting future taxable income, we develop assumptions including the amount of future state, federal and foreign pretax operating income, the reversal of temporary differences, and the implementation of feasible and prudent tax planning strategies. These assumptions require significant judgment about the forecasts of future taxable income and are consistent with the plans and estimates we are using to manage the underlying businesses. The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in a multitude of jurisdictions across our global operations. Income tax positions must meet a more-likely-than-not recognition threshold to be recognized. Net Income Per Common Share Basic net income per common share (“Basic EPS”) is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted net income per common share (“Diluted EPS”) reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted into common stock. The computation of Diluted EPS does not assume exercise or conversion of securities that would have an anti-dilutive effect on net income per common share. The following is a reconciliation of the numerator and denominator of Basic EPS to the numerator and denominator of Diluted EPS for all years (dollar and share amounts in thousands, except for per share information): 2020 2019 Net income attributable to common shareholders: Net income $ 21,337 $ 6,765 Basic weighted-average shares outstanding 19,537 19,314 Basic earnings per share attributable to common shareholders: Net income $ 1.09 $ 0.35 Diluted Shares Outstanding: Basic weighted-average shares outstanding 19,537 19,314 Share-based awards 431 349 Diluted weighted-average shares outstanding 19,968 19,663 Diluted earnings per share attributable to common shareholders: Net income $ 1.07 $ 0.34 Potentially dilutive shares excluded from diluted-per-share amounts: Share-based awards 703 439 Potentially anti-dilutive shares excluded from diluted-per-share amounts: Share-based awards 176 214 For the year ended December 31, 2020, potentially dilutive shares excluded from diluted-per-share amounts include performance-based restricted stock units ("RSU"), for which certain metrics have not been achieved. Potentially anti-dilutive shares excluded from diluted-per-share amounts include both non-qualified stock options and unearned performance-based options to purchase shares of common stock with exercise prices greater than the weighted-average share price during the period and shares that would be anti-dilutive to the computation of diluted net income per share for each of the years presented. Share-Based Compensation Our outstanding stock options include time-based stock options, which vest over differing periods ranging from the date of issuance up to 48 months from the option grant date and performance-based stock options, which have already vested upon achieving operating income margins of six, eight and ten percent as reported in four of five consecutive quarters over the term of the options. Our outstanding RSUs include time-based RSUs, which vest over differing periods ranging from 12 months up to 36 months from the RSU grant date, as well as performance-based RSUs, which vest upon achieving targets relating to revenue and earnings growth, earnings-per-share, and/or stock price levels. RSUs granted to the Board of Directors contain a restriction period in which the shares are not issued until two years after vesting. We recognize all share-based payments to Directors and employees, including grants of stock options and RSUs, in the statement of operations based on their grant-date fair values. We record compensation expense over the vesting period of the stock options and RSUs based on the fair value of the stock options and RSUs on the date of grant. Comprehensive Income (Loss) Comprehensive income (loss) includes all changes in shareholders’ equity except those resulting from investments by, and distributions to, shareholders. Accordingly, our comprehensive income (loss) includes net income and foreign currency adjustments that arise from the translation of the financial statements of our foreign subsidiaries. Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating taxes during the quarters and the recognition of deferred tax liabilities for outside basis differences. The amendments in this update are effective for reporting periods beginning after December 15, 2020, with early adoption permitted. The adoption of this ASU is not expected to have a significant impact on our Consolidated Financial Statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in this update are elective and subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. This could affect balances of right of use assets, lease liabilities, and notes payables. The amendments in this update are effective as of March 12, 2020 through December 21, 2022. The adoption of this ASU is not expected to have a significant impact on our Consolidated Financial Statements. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION Net sales include sales of products and shipping and handling charges, net of estimates for product returns and any related sales incentives or rebates based upon historical information and current trends. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products. All revenue is recognized when we satisfy our performance obligations under the contract. We recognize revenue by transferring the promised products to the customer, with revenue recognized at shipping point, the point in time the customer obtains control of the products. The majority of our contracts have a single performance obligation and are short term in nature. Contracts with multiple performance obligations are insignificant. Amounts received for unshipped merchandise are recorded as deferred revenue. A reserve for product returns is recorded based upon historical experience. We allow independent consultants to return the unused portion of products within ninety days of purchase if they are not satisfied with the product. In some of our markets, the requirements to return product are more restrictive. Sales returns for the years ended December 31, 2020 and 2019, were $2.0 million and $1.9 million, respectively. Amounts billed to customers for shipping and handling are reported as a component of net sales. Shipping and handling revenues of approximately $3.4 million and $6.2 million were reported as net sales for the years ended December 31, 2020 and 2019, respectively. The decrease is primarily due to promotions designed to drive growth in our North America segment. Volume incentives, and other sales incentives or rebates, are a significant part of our direct sales marketing program, and represent commission payments made to independent consultants. These payments are designed to provide incentives for reaching higher sales levels. The amount of volume incentive recognized is determined based upon the amount of qualifying purchases in a given month and recorded as volume incentive expense. Payments to independent consultants for sales incentives or rebates related to their own purchases are recorded as a reduction of revenue. Payments for sales incentives and rebates are calculated monthly based upon qualifying sales. Taxes that have been assessed by governmental authorities and that are directly imposed on revenue-producing transactions between us and our customers, including sales, use, value-added, and some excise taxes, are presented on a net basis (excluded from net sales). Contract Liabilities - Customer Loyalty Programs We record contract liabilities for loyalty point programs in deferred revenue. These programs are accounted for as a reduction in the transaction price and are generally recognized as points are redeemed for additional products. The following table presents changes in these contract liability balances for the years ended December 31, 2019 and 2020 (dollar amounts in thousands): Outstanding at January 1, 2019 $ 1,079 Increase (decrease) attributed to: Customer loyalty net deferrals 4,969 Customer loyalty redemptions (5,093) Outstanding at December 31, 2019 955 Increase (decrease) attributed to: Customer loyalty net deferrals 7,370 Customer loyalty redemptions (7,342) Outstanding at December 31, 2020 $ 983 The table above excludes liability for sales returns, as they are insignificant. Disaggregation of Revenue Our products are grouped into six principal categories: general health, immune, cardiovascular, digestive, personal care and weight management. We have four business segments that are based primarily upon the geographic region where each segment operates. Each of the geographic segments operate under the Nature’s Sunshine Products and Synergy® WorldWide brands. See Note 14, Segment Information, for further information on our reportable segments and our presentation of disaggregated revenue by reportable segment and product category. Practical Expedients and Exemptions We have made the accounting policy election to treat shipping and handling as a fulfillment activity rather than a promised service under Topic 606. We generally expense volume incentives when incurred because the amortization period would have been one year or less. All of our contracts with customers have a duration of less than one year. The value of any unsatisfied performance obligations is insignificant. |
RESTRUCTURING RELATED EXPENSES
RESTRUCTURING RELATED EXPENSES | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING RELATED EXPENSES | RESTRUCTURING RELATED EXPENSES In 2019, we continued to execute our strategy to reduce costs and improve efficiencies. During the year ended December 31, 2019, we incurred $2.4 million of non-recurring expenses that are recorded primarily in selling, general and administrative expense consisting of severance. Of the restructuring expenses incurred during the year ended December 31, 2019, $0.4 million of severance remained payable at December 31, 2019. During 2019, we wrote-off cumulative translation adjustments from the closure of a market that resulted in a loss of $0.6 million. This loss is included in Foreign exchange losses, net, within the Consolidated Statements of Operation during the year ended December 31, 2019. In 2020, we continued to execute our strategy to reduce costs and improve efficiencies. During the year ended December 31, 2020, we incurred $0.8 million of non-recurring expenses that are recorded primarily in selling, general and administrative expense consisting of severance. Of the restructuring expenses incurred during the year ended December 31, 2020, $0.4 million of severance and rent expenses remained payable at December 31, 2020. The following table summarizes the 2019, and 2020 restructuring activity (dollar amounts in thousands): Total Liability balance at January 1, 2019 $ 265 Increase in liability 2,375 Reduction in liability (payments) (2,257) Liability balance at December 31, 2019 383 Increase in liability 808 Reduction in liability (payments) (840) Liability balance at December 31, 2020 $ 351 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES The composition of inventories is as follows (dollar amounts in thousands): As of December 31, 2020 2019 Raw materials $ 13,956 $ 13,329 Work in process 1,351 1,426 Finished goods 32,376 31,911 Total inventory $ 47,683 $ 46,666 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT The composition of property, plant and equipment is as follows (dollar amounts in thousands): As of December 31, 2020 2019 Land and improvements $ 363 $ 448 Buildings and improvements 32,324 32,374 Machinery and equipment 27,955 28,533 Furniture and fixtures 12,557 18,162 Computer software and hardware 56,838 52,837 130,037 132,354 Accumulated depreciation and amortization (75,682) (72,842) Total property, plant and equipment $ 54,355 $ 59,512 Depreciation expense was $10.4 million and $10.5 million for the years ended December 31, 2020 and 2019, respectively. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | INVESTMENT SECURITIES Our trading securities portfolio totaled $1.0 million and $1.2 million at December 31, 2020 and 2019, respectively, and generated a gains of $0.1 million and $0.2 million, for the years ended December 31, 2020 and 2019, respectively. |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
ACCRUED LIABILITIES | ACCRUED LIABILITIES The composition of accrued liabilities is as follows (dollar amounts in thousands): As of December 31, 2020 2019 Salaries and employee benefits $ 15,293 $ 11,265 Sales, use and property tax (See Note 14) 3,256 2,830 Convention and meeting costs 6,375 5,501 Other 6,786 5,935 Total $ 31,710 $ 25,531 |
REVOLVING CREDIT FACILITY AND O
REVOLVING CREDIT FACILITY AND OTHER OBLIGATIONS | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
REVOLVING CREDIT FACILITY AND OTHER OBLIGATIONS | REVOLVING CREDIT FACILITY AND OTHER OBLIGATIONS On July 11, 2017, we entered into a revolving credit agreement with Bank of America, N.A., with a borrowing limit of $25.0 million, that matures on July 11, 2020 (the “Credit Agreement”). On June 11, 2020 the credit agreement was amended to extend the term to mature on July 1, 2023. The amendment also allows for additional borrowings of $15.0 million or up to three separate increases of no less than $5.0 million each. We pay interest on any borrowings under the Credit Agreement, which through June 10, 2020, was at LIBOR plus 1.25 percent (3.05 percent as of December 31, 2019), and an annual commitment fee of 0.2 percent on the unused portion of the commitment. Interest under the amended Credit Agreement is at LIBOR, or the Index floor of 0.75 percent, plus 2.25 percent (3.00 percent as of December 31, 2020), and an annual commitment fee of 0.25 percent on the unused portion of the commitment. We are required to settle our net borrowings under the Credit Agreement only upon maturity. At December 31, 2020, there was no outstanding balance under the Credit Agreement. On March 8, 2020, we signed an amendment to the credit agreement that eliminates the Index floor from the calculation of interest. The Credit Agreement contains customary financial covenants, including financial covenants relating to our solvency and leverage. In addition, the Credit Agreement restricts certain capital expenditures, lease expenditures, other indebtedness, liens on assets, guarantees, loans and advances, dividends, mergers, consolidations and transfers of assets except as permitted in the Credit Agreement. The Credit Agreement is collateralized by our manufacturing facility, accounts receivable balance, inventory balance and other assets. We were in compliance with the debt covenants set forth in the Credit Agreement as of December 31, 2020. On April 21, 2020, we entered into a credit agreement with Banc of America Leasing and Capital, LLC, with a borrowing limit of $6.0 million (the "Capital Credit Agreement"). On November 19, 2020, we executed on the Capital Credit Agreement and borrowed $3.7 million. We do not expect to make any additional borrowings under the Capital Credit Agreement. We pay interest on any borrowings under the Capital Credit Agreement at a fixed rate of 3.00 percent and are required to settle our borrowings under the Capital Credit Agreement in thirty-six monthly payments, each equal to $0.1 million. The Capital Credit Agreement is collateralized by any new equipment purchased under the agreement. As of December 31, 2020, there was $3.7 million outstanding balance under the Capital Credit Agreement, $1.3 million of which was classified as current. Future maturities of long-term debt at December 31, 2020 (dollar amounts in thousands): Year Ending December 31, 2021 $ 1,306 2022 1,244 2023 1,174 Thereafter — Total $ 3,724 On April 14, 2020, we obtained a loan (the “Loan”) from Bank of America, B.A. in the amount of $5.4 million under the Paycheck Protection Program (the “PPP”) of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The PPP is a loan designed to provide an incentive for qualifying businesses to maintain their employees on the payroll despite significant |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2020 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The components of accumulated other comprehensive income (loss), net of tax, are as follows (dollar amounts in thousands): Foreign Currency Write-off of cumulative translation adjustments Total Balance as of January 1, 2019 $ (11,107) $ — $ (11,107) Activity, net of tax 477 (595) (118) Balance as of December 31, 2019 (10,630) (595) (11,225) Activity, net of tax 1,270 — 1,270 Balance as of December 31, 2020 $ (9,360) $ (595) $ (9,955) |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income from continuing operations before provision (benefit) for income taxes are taxed under the following jurisdictions (dollar amounts in thousands): Year Ended December 31, 2020 2019 Domestic $ 3,273 $ 1,770 Foreign 19,548 13,872 Total $ 22,821 $ 15,642 Components of the provision (benefit) for income taxes for each of the two years in the period ended December 31, 2020 are as follows (dollar amounts in thousands): Year Ended December 31, 2020 2019 Current: Federal $ (1,056) $ (476) State 147 94 Foreign 5,129 4,816 Subtotal 4,220 4,434 Deferred: Federal (2,332) 3,044 State 52 475 Foreign (2,077) 760 Subtotal (4,357) 4,279 Total provision (benefit) for income taxes $ (137) $ 8,713 The provision (benefit) for income taxes, as a percentage of income from continuing operations before provision (benefit) for income taxes, differs from the statutory U.S. federal income tax rate due to the following: Year Ended December 31, 2020 2019 Statutory U.S. federal income tax rate 21.0 % 21.0 % State income taxes, net of U.S. federal income tax benefit 1.3 2.9 U.S. tax impact of foreign operations 6.7 12.3 Valuation allowance change (25.0) 10.3 Unrecognized tax benefits (6.1) (3.3) Permanent foreign items 3.1 4.4 Withholding tax on royalties 2.8 4.2 Stock compensation (0.4) 7.1 Tax return to provision differences (3.3) (3.7) Elimination of provision on intercompany transactions (2.0) (0.6) Other 1.3 1.1 Effective income tax rate (0.6) % 55.7 % Adjustments relating to the U.S. impact of foreign operations increased the effective tax rate by 6.7 percentage points in 2020 and increased the effective tax rate by 12.3 percentage points in 2019. The components of this calculation were: Components of U.S. tax impact of foreign operations 2020 2019 Foreign tax credits (4.0) % (6.3) % Foreign tax rate differentials 3.1 3.6 Foreign withholding taxes 2.8 3.9 Transfer pricing adjustment 4.3 4.6 Impact of GILTI 0.6 6.5 Impact of FDII (0.1) — Total 6.7 % 12.3 % Certain prior year amounts included in the table below have been reclassified for comparative purposes. The significant components of the deferred tax assets (liabilities) are as follows (dollar amounts in thousands): As of December 31, 2020 2019 Inventory $ 1,011 $ 1,013 Accrued liabilities 3,696 2,608 Operating lease liabilities 3,273 3,639 Deferred compensation 233 273 Equity-based compensation 1,332 1,127 Intangibles assets 149 161 Bad debts 102 92 Net operating losses 5,978 7,139 Foreign tax and withholding credits 14,453 14,640 Other deferred tax assets 1,933 2,178 Valuation allowance (15,262) (21,388) Total deferred tax assets 16,898 11,482 Accelerated depreciation (4,197) (3,168) Right of use assets (2,943) (3,315) Tax on unremitted earnings (2,318) (1,642) Other deferred tax liabilities (138) (113) Total deferred tax liabilities (9,596) (8,238) Total deferred taxes, net $ 7,302 $ 3,244 The components of deferred tax assets (liabilities), net are as follows (dollar amounts in thousands): As of December 31, 2020 2019 Net deferred tax assets $ 8,693 $ 4,899 Net deferred tax liabilities (1,391) (1,655) Total deferred taxes, net $ 7,302 $ 3,244 We have elected the period cost method (costs are treated as a current period expense when incurred) under U.S. GAAP as it relates to GILTI income inclusions in U.S. taxable income. Each reporting period we analyze our indefinite reinvestment assertions with respect to undistributed foreign earnings. As of December 31, 2020, we continue to assert that we do not intend to reinvest undistributed foreign earnings indefinitely in our foreign subsidiaries. We have provided a valuation allowance of $15.3 million and $21.4 million as of December 31, 2020 and 2019, respectively, for certain deferred tax assets, including foreign net operating losses, for which we cannot conclude it is more likely than not that they will be realized. We reviewed our tax positions and decreased the valuation allowance by approximately $6.1 million in 2020 primarily due to a domestic decrease of $2.7 million and a foreign decrease of $3.4 million. For financial reporting purposes, the decrease in valuation allowances decreases income tax expenses in the year recorded. At December 31, 2020, we had approximately $14.5 million of foreign tax and withholding credits. Of the $14.5 million credits, $14.1 million are foreign tax credits, most of which expire in 2024 and the majority of which are offset by a valuation allowance. At December 31, 2020, foreign subsidiaries had unused operating loss carryovers for tax purposes of approximately $6.0 million. The net operating losses will expire at various dates from 2021 through 2029, with the exception of those in some foreign jurisdictions where there is no expiration. The foreign net operating losses have a valuation allowance recorded against the portion expected to expire before utilization. We are subject to regular audits by federal, state and foreign tax authorities. These audits may result in additional tax liabilities. We believe we have appropriately provided for income taxes for all years. Several factors drive the calculation of our tax reserves. Some of these factors include: (i) the expiration of various statutes of limitations; (ii) changes in tax law and regulations; (iii) the issuance of tax rulings; and (iv) settlements with tax authorities. Changes in any of these factors may result in adjustments to our reserves, which would impact our reported financial results. Our U.S. federal income tax returns for 2017 through 2019 are open to examination for federal tax purposes. We have several foreign tax jurisdictions that have open tax years from 2015 through 2019. The total outstanding balance for liabilities related to unrecognized tax benefits at December 31, 2020 and 2019 was $0.1 million and $1.5 million, respectively, all of which would favorably impact the effective tax rate if recognized. Included in these amounts is approximately $36,000 and $0.1 million, respectively, of combined interest and penalties. We decreased interest and penalties approximately $0.1 million and $33,000 for the years ended December 31, 2020 and 2019, respectively. We account for interest expense and penalties for unrecognized tax benefits as part of our income tax provision. During the years ended December 31, 2020 and 2019, we added approximately $0 and $0.2 million, respectively, to our liability for unrecognized tax benefits. Included in these amounts are approximately $0 and $0.1 million for the years ended December 31, 2020 and 2019, respectively, related to interest and penalties. In addition, we recorded a benefit related to the lapse of applicable statute of limitations of approximately $1.3 million and $0.8 million for the years ended December 31, 2020 and 2019, respectively, all of which favorably impacted our effective tax rate. A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax benefits, excluding interest and penalties, is as follows for the years (dollar amounts in thousands): Year Ended December 31, 2020 2019 Unrecognized tax benefits, opening balance $ 1,385 $ 1,966 Settlement of liability reclassified as income tax payable — — Payments on liability — (16) Tax positions taken in a prior period Gross increases — — Gross decreases (106) (9) Tax positions taken in the current period Gross increases — 132 Gross decreases — — Lapse of applicable statute of limitations (1,210) (686) Currency translation adjustments (13) (2) Unrecognized tax benefits, ending balance $ 56 $ 1,385 We anticipate that liabilities related to unrecognized tax benefits will increase approximately $0 to $0.1 million within the next twelve months due to additional transactions related to commissions and transfer pricing. We believe that it is reasonably possible that unrecognized tax benefits may decrease by $0 to $0.1 million within the next twelve months due to the expiration of statutes of limitations in various jurisdictions. Although we believe our estimates are reasonable, we can make no assurance that the final tax outcome of these matters will not be different from that which it has reflected in our historical income tax provisions and accruals. Such differences could have a material impact on our income tax provision and operating results in the period in which we make such determination. |
CAPITAL TRANSACTIONS
CAPITAL TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
CAPITAL TRANSACTIONS | CAPITAL TRANSACTIONS Dividends The declaration of dividends is subject to the discretion of our Board of Directors and will depend upon various factors, including our earnings, financial condition, restrictions imposed by any indebtedness that may be outstanding, cash requirements, future prospects and other factors deemed relevant by our Board of Directors. No dividends were declared for the years ended December 31, 2020 and 2019. Share-Based Compensation During the year ended December 31, 2012, our shareholders adopted and approved the 2012 Incentive Plan. The 2012 Incentive Plan provides for the grant of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalent rights, performance awards, stock awards and other stock-based awards. The Compensation Committee of the Board of Directors has authority and discretion to determine the type of award as well as the amount, terms and conditions of each award under the 2012 Incentive Plan, subject to the limitations of the 2012 Incentive Plan. A total of 1,500,000 shares of common stock were originally authorized for the granting of awards under the 2012 Stock Incentive Plan. In January 2015, our shareholders approved an amendment to the 2012 Incentive Plan, to increase the number of shares of Common Stock reserved for issuance by 1,500,000 shares. The number of shares available for awards, as well as the terms of outstanding awards, are subject to adjustment as provided in the 2012 Incentive Plan for stock splits, stock dividends, recapitalizations and other similar events. We also maintain the 2009 Incentive Plan, which was approved by shareholders in 2009. The 2009 Incentive Plan also provided for the grant of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalent rights, performance awards, stock awards and other stock-based awards. Under the 2012 Incentive Plan, any shares subject to award, or awards forfeited or reacquired by the Company issued under the 2009 Incentive Plan are available for award up to a maximum of 400,000 shares. Stock Options Our outstanding stock options include time-based stock options, which vest over differing periods ranging from the date of issuance up to 48 months from the option grant date; and performance-based stock options, which have already vested upon achieving operating income margins of six, eight and ten as reported in four of five consecutive quarters over the term of the options. Stock option activity for 2020 and 2019 consisted of the following (share amounts in thousands, except for per share information): Number of Weighted-Average Exercise Weighted-Average Options outstanding at January 1, 2019 1,114 $ 12.23 Granted 25 8.72 Forfeited or canceled (797) 12.87 Exercised (52) 4.98 Options outstanding at December 31, 2019 290 11.49 Granted — — $ — Forfeited or canceled — — — Exercised (64) 9.33 5.56 Options outstanding at December 31, 2020 226 $ 12.10 $ 5.42 During the year ended December 31, 2020, no options to purchase shares of common stock under the 2012 Stock Incentive Plan were granted. During the year ended December 31, 2019, we granted options to purchase 25,000 shares of common stock under the 2012 Stock Incentive Plan to two members of our Board of Directors, which are composed of both time-based stock options and net sales performance-based stock options. These options were issued with a weighted-average exercise price of $8.72 per share and a weighted-average grant date fair value of $3.44 per share. All of the options issued have an option termination date of ten years from the option grant date. For the years ended December 31, 2020 and 2019, we issued 64,000 and 52,000 shares of common stock upon the exercise of stock options at an average exercise price of $9.33 and $4.98 per share, respectively. The aggregate intrinsic values of options exercised during the years ended December 31, 2020 and 2019 was $0.2 million and $0.2 million, respectively. For the years ended December 31, 2020 and 2019, we recognized $0.1 million and $0.1 million of tax benefits from the exercise of stock options during the period, respectively. The fair value of each option grant was estimated on the date of the grant using the Black-Scholes option-pricing model with the following weighted-average assumptions for the years ended December 31, 2020 and 2019: 2020 2019 Weighted-average grant date fair value of grants $ — 3.44 Expected life (in years) 0.0 5.0 Risk-free interest rate — % 1.5 % Expected volatility — % 43.2 % Dividend yield — % — % Share-based compensation expense from time-based stock options for the years ended December 31, 2020 and 2019, was $0 and $0.1 million, respectively. As of December 31, 2020 and 2019, the unrecognized share-based compensation cost related to grants described above was $0, respectively. As of December 31, 2020, there are no unvested options. At December 31, 2020, the aggregate intrinsic value of outstanding and exercisable options to purchase 226,000 shares of common stock was $0.7 million. At December 31, 2019, the aggregate intrinsic value of outstanding and exercisable options to purchase 290,000 shares of common stock was $0.1 million. Restricted Stock Units Our outstanding restricted stock units ("RSUs"), include time-based RSUs, which vest over differing periods ranging from 12 months up to 36 months from the RSU grant date, as well as performance-based RSUs, which vest upon achieving targets relating to growth, earnings-per-share, and/or stock price levels. RSUs granted to members of the Board of Directors contain a restriction period in which the shares are not issued until two years after vesting. At December 31, 2020 and 2019, there were 82,000 and 95,000 vested RSUs, respectively, granted to members of the Board of Directors that had a restriction period. Restricted stock unit activity for the years ended December 31, 2020 and 2019 is as follows: (share amounts in thousands, except per share information): Number of Weighted-Average Units outstanding at January 1, 2019 1,058 $ 8.87 Granted 333 7.23 Issued (179) 10.21 Forfeited (391) 9.88 Units outstanding at December 31, 2019 821 7.43 Granted 691 5.84 Issued (301) 8.28 Forfeited (32) 11.93 Units outstanding at December 31, 2020 1,179 $ 6.18 During the year ended December 31, 2020, we granted 691,000 RSUs of common stock under the 2012 Incentive Plan to our board, executive officers and other employees, which are composed of both time-based RSUs and share-price performance-based RSUs. The time-based RSUs were granted with a weighted-average grant date fair value $7.68 per share and vest in 12 monthly installments over a one year period from the grant date or in annual installments over three year period from the grant date. The share-price performance-based RSUs were granted with a weighted-average grant date fair value of $4.51 per share and vest upon achieving share-price targets over a three year period from the grant date. During the year ended December 31, 2019, we granted 333,000 RSUs of common stock under the 2012 Incentive Plan to our board, executive officers and other employees, which are composed of both time-based RSUs and share-price performance-based RSUs. The time-based RSUs were granted with a weighted-average grant date fair value of $8.59 per share and vest in 12 monthly installments over a one year period from the grant date or in annual installments over a three year period from the grant date. The share-price performance-based RSUs were granted with a weighted-average grant date fair value of $4.38 per share and vest upon achieving share-price targets over a three year period from the grant date with applicable compensation accelerated upon vesting. Except for share-price performance-based RSUs, RSUs are valued at the market value on the date of grant, which is the grant date share price discounted for expected dividend payments during the vesting period. For RSUs with post-vesting restrictions, a Finnerty Model was utilized to calculate a valuation discount from the market value of common shares reflecting the restriction embedded in the RSUs preventing the sale of the underlying shares over a certain period of time. Using assumptions previously determined for the application of the option pricing model at the valuation date, the Finnerty Model discount for lack of marketability is between 12.0 percent and 12.7 percent for a common share. Share-price performance-based RSUs were estimated using the Monte Carlo simulation model. The Monte Carlo simulation model utilizes multiple input variables to estimate the probability that market conditions will be achieved. Our assumptions include a performance period of three years, expected volatility between 50.0 percent and 55.6 percent , and a range of risk free rates between 0.3 percent and 2.9 percent. Share-based compensation expense from RSUs for the period ended December 31, 2020 and 2019 was approximately $3.8 million and $2.0 million, respectively. As of December 31, 2020, and 2019, the unrecognized share-based compensation expense related to the grants described above was $1.3 million and $1.1 million, respectively. As of December 31, 2020, the remaining compensation expense is expected to be recognized over the weighted-average period of approximately 0.7 years. Share-based compensation expense related to performance-based RSUs for the years ended December 31, 2020 and 2019, was approximately $0.9 million and $0.6 million, respectively. Should we attain all of the metrics related to the performance-based RSU grant, we would recognize up to $3.0 million of potential share-based compensation expense. We currently expect to recognize an additional $1.2 million of that potential share-based compensation expense. The number of shares issued upon vesting or exercise for restricted stock units granted, pursuant to our share-based compensation plans, is net of shares withheld to cover the minimum statutory withholding requirements that we pay on behalf of our employees, which was 63,000 and 36,000 shares for the years ended December 31, 2020 and 2019, respectively. Although shares withheld are not issued, they are treated as common share repurchases for accounting purposes, as they reduce the number of shares that would have been issued upon vesting. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Deferred Compensation Plans We sponsor a qualified deferred compensation plan which qualifies under Section 401(k) of the Internal Revenue Code. During 2020, we made matching contributions of 70.0 percent of employee contributions up to a maximum of 5.0 percent of the employee’s compensation. Our contributions to the plan vest after a period of three years. During 2020 and 2019, we contributed to the plan $0.9 million and $1.0 million, respectively. We provide a nonqualified deferred compensation plan for our officers and certain key employees. Under this plan, participants may defer up to 100 percent of their annual salary and bonus. Although participants direct the investment of these funds, they are classified as trading securities and are included in long-term investment securities on the consolidated balance sheets because they remain our assets until they are actually paid out to the participants. We have established a trust to finance obligations under the plan. At the end of each year and at other times provided under the plan, we adjust our obligation to a participant by the investment return or loss on the funds selected by the participant under rules established in the plan. Upon separation of employment of the participant with the Company, the obligation owed to the participant under the plan will be paid as a lump sum or over a period of either three |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Contractual Obligations We have entered into long-term agreements with third-parties in the ordinary course of business, in which we have agreed to pay a percentage of net sales in certain regions in which we operate, or royalties on certain products. In 2020 and 2019, the aggregate amounts of these payments were $23,000 and $10,000, respectively. Legal Proceedings We are party to various legal proceedings. Management cannot predict the ultimate outcome of these proceedings, individually or in the aggregate, or their resulting effect on our business, financial position, results of operations or cash flows as litigation and related matters are subject to inherent uncertainties, and unfavorable rulings could occur. Were an unfavorable outcome to occur, there exists the possibility of a material adverse impact on our business, financial position, results of operations, or cash flows for the period in which the ruling occurs and/or future periods. We maintain product liability, general liability and excess liability insurance coverage. However, no assurances can be given that such insurance will continue to be available at an acceptable cost to us, that such coverage will be sufficient to cover one or more large claims, or that the insurers will not successfully disclaim coverage as to a pending or future claim. Non-Income Tax Contingencies We have reserved for certain state sales and use tax and foreign non-income tax contingencies based on the likelihood of an obligation in accordance with accounting guidance for probable loss contingencies. Loss contingency provisions are recorded for probable losses at management’s best estimate of a loss, or when a best estimate cannot be made, a minimum loss contingency amount is recorded. We provide provisions for potential payments of tax to various tax authorities for contingencies related to non-income tax matters, including value-added taxes and sales tax. We provide provisions for U.S. state sales taxes in each of the states where we have nexus. As of December 31, 2020 and 2019, accrued liabilities include $0.2 million and $0.4 million related to non-income tax contingencies, respectively. While we believe that the assumptions and estimates used to determine this liability are reasonable, the ultimate outcome of these matters cannot presently be determined. We believe future payments related to these matters could range from $0 to approximately $2.6 million . Other Litigation We are party to various other legal proceedings in the United States and several foreign jurisdictions related to value-added tax assessments and other civil litigation. We have accrued $0.5 million related to the estimated outcome of these proceedings as of December 31, 2020. In addition, we are party to other litigation where there is a reasonable possibility that a loss may be incurred, either the losses are not considered to be probable or we cannot at this time estimate the loss, if any; therefore, no provision for losses has been provided. We believe future payments related to these matters could range from $0 to approximately $0.3 million. During the years ended December 31, 2020 and 2019, we made payments of $0 and $2.0 million related to the settlement of litigation. Self-Insurance Liabilities Similar to other manufacturers and distributors of products that are ingested, we face an inherent risk of exposure to product liability claims in the event that, among other things, the use of our products results in injury. During 2017, we secured product liability coverage to cover possible claims. Such insurance may not be sufficient to cover one or more large claims, or the insurer may successfully disclaim coverage as to a pending or future claim. As a result, there can be no assurance that the ultimate outcome of any litigation for product liability will not have a material negative impact on our business prospects, financial position, results of operations or cash flows. Subsequent to obtaining the product liability coverage, we have recorded a reserve which is an estimate of potential costs. We self-insure for certain employee medical benefits. The recorded liabilities for self-insured risks are calculated using actuarial methods and are not discounted. The liabilities include amounts for actual claims and claims incurred but not reported. Actual experience, including claim frequency and severity as well as health care inflation, could result in actual liabilities being more or less than the amounts currently recorded. We review our self-insurance accruals on a quarterly basis and determine, based upon a review of our recent claims history and other factors, which portions of our self-insurance accruals should be considered short-term and long-term. We have accrued $0.7 million and $0.8 million for product liability and employee medical claims at December 31, 2020 and 2019, respectively, of which $0.4 million and $0.5 million was classified as short-term. Such amounts are included in accrued liabilities and other long-term liabilities on our consolidated balance sheets. Government Regulations We are subject to governmental regulations pertaining to product formulation, labeling and packaging, product claims and advertising, and to our direct selling system. We are also subject to the jurisdiction of numerous foreign tax and customs authorities. Any assertions or determinations that either us or our independent consultants are not in compliance with existing statutes, laws, rules or regulations could potentially have a material adverse effect on our operations. In addition, in any country or jurisdiction, the adoption of new statutes, laws, rules or regulations, or changes in the interpretation of existing statutes, laws, rules or regulations could have a material adverse effect on us and our operations. Although we believe that we are in compliance, in all material respects, with the statutes, laws, rules and regulations of every jurisdiction in which we operate, no assurance can be given that our compliance with applicable statutes, laws, rules and regulations will not be challenged by foreign authorities or that such challenges will not have a material adverse effect on our financial position, results of operations or cash flows. |
OPERATING BUSINESS SEGMENT AND
OPERATING BUSINESS SEGMENT AND INTERNATIONAL OPERATION INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
OPERATING BUSINESS SEGMENT AND INTERNATIONAL OPERATION INFORMATION | OPERATING BUSINESS SEGMENT AND INTERNATIONAL OPERATION INFORMATION We have four business segments (Asia, Europe, North America, and Latin America and Other) based primarily upon the geographic region where each segment operates, as well as the internal organization of our officers and their responsibilities. Each of the geographic segments operate under the Nature’s Sunshine Products and Synergy® WorldWide brands. The Latin America and Other segment includes our wholesale business in which we sell products to various locally-managed entities, independent of the Company, that we have granted distribution rights for the relevant market. Historically, our operating segments were based on brand, customer base, geographical operations with three operating business segments under the Nature’s Sunshine Products brand (NSP Americas; NSP Russia, Central and Eastern Europe; and NSP China), and one operating business segment under the Synergy® WorldWide brand. Reportable business segment information for the years ended December 31, 2020 and 2019 is as follows (dollar amounts in thousands): Year Ended December 31, 2020 2019 Net sales: Asia $ 138,717 $ 138,536 Europe 77,688 62,523 North America 145,481 138,163 Latin America and Other 23,319 22,993 Total net sales 385,205 362,215 Contribution margin (1): Asia 66,801 65,871 Europe 26,014 19,954 North America 50,193 49,327 Latin America and Other 9,771 9,713 Total contribution margin 152,779 144,865 Selling, general and administrative (2) 131,297 128,740 Operating income 21,482 16,125 Other income (loss), net 1,339 (483) Income before provision for income taxes $ 22,821 $ 15,642 ___________________________ (1) Contribution margin consists of net sales less cost of sales and volume incentives expense. (2) Service fees in China totaled $11.7 million and $9.4 million for the years ended December 31, 2020 and 2019, respectively. These service fees are included in our selling, general and administrative expenses. Year Ended December 31, 2020 2019 Capital expenditures: Asia $ 542 $ 3,262 Europe 34 27 North America 4,267 2,605 Latin America and Other 62 21 Total capital expenditures $ 4,905 $ 5,915 Depreciation and amortization: Asia $ 1,919 $ 1,544 Europe 77 75 North America 8,673 8,855 Latin America and Other 74 125 Total depreciation and amortization $ 10,743 $ 10,599 As of December 31, 2020 2019 Assets: Asia $ 82,572 $ 65,959 Europe 16,398 15,187 North America 142,324 124,337 Latin America and Other 8,204 7,585 Total assets $ 249,498 $ 213,068 From an individual country perspective, only the United States and South Korea comprise approximately 10 percent or more of consolidated net sales for the years ended December 31, 2020 and 2019 as follows (dollar amounts in thousands): Year Ended December 31, 2020 2019 Net sales: United States $ 134,976 $ 128,019 South Korea 62,041 70,556 Other 188,188 163,640 Total net sales $ 385,205 $ 362,215 Revenue generated by each of our product lines is set forth below (dollars in thousands): Year Ended December 31, 2020 2019 Asia: General health $ 36,445 $ 37,795 Immunity 847 940 Cardiovascular 40,496 44,541 Digestive 32,605 24,434 Personal care 10,606 13,753 Weight management 17,718 17,073 138,717 138,536 Europe: General health $ 32,822 $ 22,469 Immunity 8,231 5,130 Cardiovascular 10,863 10,672 Digestive 18,673 14,456 Personal care 4,663 7,463 Weight management 2,436 2,333 77,688 62,523 North America: General health $ 61,897 $ 59,847 Immunity 23,036 15,341 Cardiovascular 15,852 18,750 Digestive 32,851 33,077 Personal care 7,587 6,170 Weight management 4,258 4,978 145,481 138,163 Latin America and Other: General health $ 6,867 $ 6,919 Immunity 3,122 2,453 Cardiovascular 1,512 1,446 Digestive 9,863 10,258 Personal care 1,203 1,056 Weight management 752 861 23,319 22,993 Total net sales $ 385,205 $ 362,215 From an individual country perspective, only the United States comprise 10 percent or more of consolidated property, plant and equipment as follows (dollar amounts in thousands): As of December 31 2020 2019 Property, plant and equipment United States $ 50,025 $ 54,470 Other 4,330 5,042 Total property, plant and equipment $ 54,355 $ 59,512 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Our joint venture in China, owned 80 percent by us and 20 percent by a wholly owned subsidiary of Fosun Pharma, borrowed $0 from the Company, during the years ended December 31, 2020 and 2019. At December 31, 2020 and 2019 our joint venture in China held a note payable to the Company of $4.8 million and $6.1 million, respectively. Our joint venture in China borrowed $0 from our joint venture partner, during the years ended December 31, 2020 and 2019. At December 31, 2020 |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values of each financial instrument. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. The following table presents our hierarchy for assets measured at fair value on a recurring basis as of December 31, 2020 (dollar amounts in thousands): Level 1 Level 2 Level 3 Quoted Prices Significant Significant Total Restricted investment securities - trading $ 989 $ — $ — $ 989 Total assets measured at fair value on a recurring basis $ 989 $ — $ — $ 989 The following table presents our hierarchy for assets measured at fair value on a recurring basis as of December 31, 2019 (dollar amounts in thousands): Level 1 Level 2 Level 3 Quoted Prices Significant Significant Total Restricted investment securities - trading $ 1,150 $ — $ — $ 1,150 Total assets measured at fair value on a recurring basis $ 1,150 $ — $ — $ 1,150 Restricted investment securities - trading — Our trading portfolio consists of various marketable securities that are valued using quoted prices in active markets. For the years ended December 31, 2020 and 2019, there were no fair value measurements using significant other observable inputs (Level 2) or significant unobservable inputs (Level 3). |
SUMMARY OF QUARTERLY OPERATIONS
SUMMARY OF QUARTERLY OPERATIONS - UNAUDITED | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
SUMMARY OF QUARTERLY OPERATIONS - UNAUDITED | SUMMARY OF QUARTERLY OPERATIONS — UNAUDITED The following tables presents our unaudited summary of quarterly operations during 2020 and 2019 for each of three month periods ended March 31, June 30, September 30, and December 31 (dollar amounts in thousands, except per share information). For the Quarter Ended March 31, June 30, September 30, December 31, Net sales $ 95,926 $ 87,286 $ 100,250 $ 101,743 Cost of sales (24,681) (23,017) (27,175) (26,403) Gross profit 71,245 64,269 73,075 75,340 Volume incentives 33,018 29,165 34,310 34,657 Selling, general and administrative 31,065 28,504 33,294 38,434 Operating income 7,162 6,600 5,471 2,249 Other income (expense) (2,410) 1,509 671 1,569 Income before income taxes 4,752 8,109 6,142 3,818 Provision (benefit) for income taxes 1,746 1,976 (1,027) (2,832) Net income 3,006 6,133 7,169 6,650 Net income attributable to noncontrolling interests 44 379 414 784 Net income attributable to common shareholders $ 2,962 $ 5,754 $ 6,755 $ 5,866 Basic and diluted net income per common share: Basic earnings per share attributable to common shareholders: $ 0.15 $ 0.30 $ 0.35 $ 0.30 Diluted earnings per share attributable to common shareholders: $ 0.15 $ 0.29 $ 0.34 $ 0.29 Basic and diluted income per share is computed independently for each of the quarters presented. Therefore, the sum of the quarterly net income per share may not equal the total computed for the year. For the Quarter Ended March 31, June 30, September 30, December 31, Net sales $ 91,272 $ 90,724 $ 88,524 $ 91,695 Cost of sales (23,429) (23,865) (22,784) (23,862) Gross profit 67,843 66,859 65,740 67,833 Volume incentives 31,013 31,302 29,862 31,233 Selling, general and administrative 33,852 31,019 31,177 32,692 Operating income 2,978 4,538 4,701 3,908 Other income (expense), net (48) 306 (1,243) 502 Income before income taxes 2,930 4,844 3,458 4,410 Provision for income taxes 1,201 2,215 2,107 3,190 Net income 1,729 2,629 1,351 1,220 Net income (loss) attributable to noncontrolling interests (28) (60) 34 218 Net income attributable to common shareholders $ 1,757 $ 2,689 $ 1,317 $ 1,002 Basic and diluted net income per common share: Basic earnings per share attributable to common shareholders: $ 0.09 $ 0.14 $ 0.07 $ 0.05 Diluted earnings per share attributable to common shareholders: $ 0.09 $ 0.14 $ 0.07 $ 0.05 Basic and diluted income per share is computed independently for each of the quarters presented. Therefore, the sum of the quarterly net income per share may not equal the total computed for the year. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
LEASES | LEASES Adoption of ASU Topic 842 We adopted ASU No. 2016-02, Leases (Topic 842): Accounting for Leases, as of January 1, 2019. This update requires lessees to recognize right-of-use assets and lease liabilities arising from leases. We elected certain practical expedients permitted under the transition guidance. We elected the optional transition method that allows for a cumulative-effect adjustment and will not restate prior periods. Under the new guidance, all leases will continue to be classified as operating. Adoption of the new standard resulted in recording of additional net operating lease right-of-use assets and lease liabilities of approximately $23.1 million and $24.0 million, respectively, as of January 1, 2019. The difference between the operating lease right-of-use assets and lease liabilities reflects deferred rent balances at the time of adoption. The standard did not materially impact consolidated net earnings and cash flows. We lease certain retail stores, warehouses, distribution centers, office spaces and equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. For leases beginning in 2019 and later, we account for lease components including rent, real estate taxes and insurance costs separately from non-lease components, like common-area maintenance fees. Most of our leases include one or more options to renew, with renewal terms that can extend the lease term for one Operating lease costs were approximately $6.6 million and $6.7 million for the years ended December 31, 2020 and 2019, respectively. Short-term lease costs were approximately $0.4 million and $0.2 million for the years ended December 31, 2020 and 2019, respectively. Operating lease costs were offset by sublease income of $0.1 million and $0.1 million for the years ended December 31, 2020 and 2019, respectively. Short-term lease costs represent our costs with respect to leases with a duration of 12 months or less and are not reflected on our Consolidated Balance Sheets. Information related to the Company's operating right-of-use assets and related operating lease liabilities were as follows (dollar amounts in thousands, except lease term and discount rate): As of December 31, 2020 2019 Assets: Operating lease right-of-use assets $ 20,210 $ 23,951 Liabilities: Current 4,992 4,941 Long-term 16,412 20,213 Total operating lease liabilities $ 21,404 $ 25,154 Weighted-average remaining lease term 6.3 7.0 Weighted-average discount rate 4.23 % 4.21 % Year Ended December 31, 2020 2019 Cash paid for operating lease liabilities $ 5,703 $ 6,147 Right-of-use assets obtained in exchange for new operating lease obligations (1) 1,996 29,883 Cancellations or adjustments of leases that resulted in the reduction of lease assets in exchange for lease liabilities $ (1,111) $ (486) (1) Balance as of December 31, 2019 includes $23.1 million for operating leases existing on January 1, 2019. There were no material operating leases that we have entered into and that were yet to commence as of December 31, 2020. The approximate aggregate commitments under non-cancelable operating leases in effect at December 31, 2020, were as follows (dollar amounts in thousands): Year Ending December 31, 2021 $ 5,834 2022 4,077 2023 3,109 2024 2,917 2025 2,188 Thereafter 6,500 Total lease payments $ 24,625 Less: Imputed interest (1) 3,221 Present value of lease liabilities $ 21,404 (1) Calculated using our corporate borrowing rate based on the term of each lease ranging from 3.50 percent to 4.29 percent. Because of leases entered into during 2019, we incurred asset retirement obligations in the amount of $0.6 million and reductions of $0.3 million. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | NATURE’S SUNSHINE PRODUCTS, INC. SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019 (Amounts in thousands) Description Balance at Provisions Amounts Amounts Effect of Balance at Year Ended December 31, 2020 Allowance for doubtful accounts receivable $ 407 $ 77 $ (30) $ — $ — $ 454 Allowance for sales returns 298 2,029 (1,989) — 13 351 Tax valuation allowance 21,388 (6,120) — — (6) 15,262 Year Ended December 31, 2019 Allowance for doubtful accounts receivable $ 460 $ 10 $ (63) $ — $ — $ 407 Allowance for sales returns 329 1,843 (1,872) — (2) 298 Tax valuation allowance 20,256 1,591 (107) (372) 20 21,388 |
NATURE OF OPERATIONS AND SIGN_2
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts and transactions of the Company and our subsidiaries. At December 31, 2020 and 2019, substantially all of our subsidiaries were wholly owned. Intercompany balances and transactions have been eliminated in consolidation. We consolidate the joint ventures in Hong Kong and China in our consolidated financial statements, with another party's interest presented as a noncontrolling interest. Additionally, we operate a limited number of markets in jurisdictions where local laws require the formation of a partnership with an entity domiciled in that market. These partners have no rights to participate in the sharing of revenues, profits, losses or distribution of assets upon liquidation of these partnerships. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities, in these financial statements and accompanying notes. Actual results could differ from these estimates due to the uncertainty around the magnitude and duration of the COVID-19 pandemic, as well as other factors and those differences could have a material effect on our financial position and results of operations. The significant accounting estimates inherent in the preparation of our financial statements include estimates associated with our determination of liabilities related to independent consultant incentives, the determination of income tax assets and liabilities, certain other non-income tax and value-added tax contingencies, and legal contingencies. In addition, significant estimates form the basis for allowances with respect to inventory valuations. Various assumptions and other factors enter into the determination of these significant estimates. The process of determining significant estimates takes into account historical experience and current and expected economic conditions. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid short-term investments with original maturities of three months or less to be cash equivalents. Substantially all of our cash deposits either exceed the United States federally insured limit or are located in countries that do not have government insured accounts or are subject to tax withholdings when repatriating earnings. |
Accounts Receivable | Accounts Receivable Accounts receivable consist principally of receivables from credit card companies, arising from the sale of products to our independent consultants, and receivables from independent consultants in foreign markets. Accounts receivable have been reduced by an allowance for amounts that may be uncollectible in the future. However, due to the geographic dispersion of credit card and independent consultant receivables, the collection risk is not considered to be significant. Substantially all of the receivables from credit card companies were current as of December 31, 2020 and 2019. We maintain an allowance for potential credit losses that is based primarily on the aging category, historical trends and management’s evaluation of the financial condition of account holder. This reserve is adjusted periodically as information about specific accounts becomes available. |
Restricted Investment Securities | Restricted Investment Securities We have certain restricted investment securities classified as trading securities. We maintain our trading securities portfolio to generate returns that are offset by corresponding changes in certain liabilities related to our deferred compensation plans (see Note 12). The trading securities portfolio consists of marketable securities, which are recorded at fair value and are included in long-term restricted investment securities on the consolidated balance sheets because they remain our assets until they are actually paid out to the participants. These investment securities are not available to us to fund operations as they are restricted for the payment of the deferred compensation payable. We have established a rabbi trust to finance obligations under the plan. Both realized and unrealized gains and losses on trading securities are included in interest and other income. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Our financial instruments, consisting primarily of cash and cash equivalents, accounts receivable, investments, and accounts payable, approximate fair value due to their short-term nature. The carrying value of our debt approximates fair value due to its recent acquisition and short maturity. During the years ended December 31, 2020, and 2019, we did not have any write-offs related to the remeasurement of non-financial assets at fair value on a nonrecurring basis subsequent to their initial recognition. |
Inventories | Inventories Inventories are adjusted to lower of cost and net realizable value, using the first-in, first-out method. The components of inventory cost include raw materials, labor and overhead. To estimate any necessary adjustments, various assumptions are made in regard to excess or slow-moving inventories, non-conforming inventories, expiration dates, current and future product demand, production planning and market conditions. If future demand and market conditions are less favorable than management's assumptions, additional inventory adjustments could be required. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Estimated useful lives for buildings range from 20 to 50 years; building improvements range from 7 to 10 years; machinery and equipment range from 2 to 10 years; computer software and hardware range from 3 to 10 years; and furniture and fixtures range from 2 to 5 years. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful lives of the related assets. Maintenance and repairs are expensed as incurred and major improvements are capitalized. |
Other Assets | Other AssetsOther assets include lease deposits, deposits with third-party service providers, intangible assets, and deposits to operate in certain markets. |
Impairment of Long-Lived Assets | Impairment of Long-Lived AssetsWe review our long-lived assets, such as property, plant and equipment and intangible assets, for impairment when events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. If an impairment indicator existed, we would use an estimate of future undiscounted net cash flows of the related assets or groups of assets over their remaining lives in measuring whether the assets were recoverable. An impairment loss would be calculated by determining the difference between the carrying values and the fair values of these assets. |
Incentive Trip Accrual | Incentive Trip Accrual |
Foreign Currency Translation | Foreign Currency Translation The local currency of the foreign subsidiaries is used as the functional currency, except for our operations are served by a U.S. based subsidiary (for example, Russia and Ukraine). The financial statements of foreign subsidiaries where the local currency is the functional currency are translated into U.S. dollars using exchange rates in effect at year end for assets and liabilities and average exchange rates during each year for the results of operations. Adjustments resulting from translation of financial statements are reflected in accumulated other comprehensive loss, net of income taxes. Foreign currency transaction gains and losses are included in other income (expense) in the consolidated statements of operations. |
Revenue Recognition | Revenue Recognition |
Advertising Costs | Advertising Costs |
Research and Development | Research and Development |
Contingencies | Contingencies |
Income Taxes | Income Taxes Our income tax expense includes amounts related to the United States and many foreign jurisdictions and is comprised of current year income taxes payable, changes in our deferred tax assets and liabilities and contingent reserves. Deferred tax assets are offset by a valuation allowance if it is believed to be more likely than not that some portion of the deferred tax asset will not be fully realized. Deferred income taxes arise from temporary differences between the tax and financial statement recognition of revenue and expense. In evaluating our ability to recover our deferred tax assets, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations. In projecting future taxable income, we develop assumptions including the amount of future state, federal and foreign pretax operating income, the reversal of temporary differences, and the implementation of feasible and prudent tax planning strategies. These assumptions require significant judgment about the forecasts of future taxable income and are consistent with the plans and estimates we are using to manage the underlying businesses. The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in a multitude of jurisdictions across our global operations. Income tax positions must meet a more-likely-than-not recognition threshold to be recognized. |
Net Income Per Common Share | Net Income Per Common Share Basic net income per common share (“Basic EPS”) is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted net income per common share (“Diluted EPS”) reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted into common stock. The computation of Diluted EPS does not assume exercise or conversion of securities that would have an anti-dilutive effect on net income per common share. |
Share-Based Compensation | Share-Based Compensation Our outstanding stock options include time-based stock options, which vest over differing periods ranging from the date of issuance up to 48 months from the option grant date and performance-based stock options, which have already vested upon achieving operating income margins of six, eight and ten percent as reported in four of five consecutive quarters over the term of the options. Our outstanding RSUs include time-based RSUs, which vest over differing periods ranging from 12 months up to 36 months from the RSU grant date, as well as performance-based RSUs, which vest upon achieving targets relating to revenue and earnings growth, earnings-per-share, and/or stock price levels. RSUs granted to the Board of Directors contain a restriction period in which the shares are not issued until two years after vesting. We recognize all share-based payments to Directors and employees, including grants of stock options and RSUs, in the statement of operations based on their grant-date fair values. We record compensation expense over the vesting period of the stock options and RSUs based on the fair value of the stock options and RSUs on the date of grant. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) includes all changes in shareholders’ equity except those resulting from investments by, and distributions to, shareholders. Accordingly, our comprehensive income (loss) includes net income and foreign currency adjustments that arise from the translation of the financial statements of our foreign subsidiaries. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating taxes during the quarters and the recognition of deferred tax liabilities for outside basis differences. The amendments in this update are effective for reporting periods beginning after December 15, 2020, with early adoption permitted. The adoption of this ASU is not expected to have a significant impact on our Consolidated Financial Statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in this update are elective and subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. This could affect balances of right of use assets, lease liabilities, and notes payables. The amendments in this update are effective as of March 12, 2020 through December 21, 2022. The adoption of this ASU is not expected to have a significant impact on our Consolidated Financial Statements. |
NATURE OF OPERATIONS AND SIGN_3
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of reconciliation of the numerator and denominator of Basic EPS to the numerator and denominator of Diluted EPS | The following is a reconciliation of the numerator and denominator of Basic EPS to the numerator and denominator of Diluted EPS for all years (dollar and share amounts in thousands, except for per share information): 2020 2019 Net income attributable to common shareholders: Net income $ 21,337 $ 6,765 Basic weighted-average shares outstanding 19,537 19,314 Basic earnings per share attributable to common shareholders: Net income $ 1.09 $ 0.35 Diluted Shares Outstanding: Basic weighted-average shares outstanding 19,537 19,314 Share-based awards 431 349 Diluted weighted-average shares outstanding 19,968 19,663 Diluted earnings per share attributable to common shareholders: Net income $ 1.07 $ 0.34 Potentially dilutive shares excluded from diluted-per-share amounts: Share-based awards 703 439 Potentially anti-dilutive shares excluded from diluted-per-share amounts: Share-based awards 176 214 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability | The following table presents changes in these contract liability balances for the years ended December 31, 2019 and 2020 (dollar amounts in thousands): Outstanding at January 1, 2019 $ 1,079 Increase (decrease) attributed to: Customer loyalty net deferrals 4,969 Customer loyalty redemptions (5,093) Outstanding at December 31, 2019 955 Increase (decrease) attributed to: Customer loyalty net deferrals 7,370 Customer loyalty redemptions (7,342) Outstanding at December 31, 2020 $ 983 The table above excludes liability for sales returns, as they are insignificant. |
RESTRUCTURING RELATED EXPENSES
RESTRUCTURING RELATED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring activities | The following table summarizes the 2019, and 2020 restructuring activity (dollar amounts in thousands): Total Liability balance at January 1, 2019 $ 265 Increase in liability 2,375 Reduction in liability (payments) (2,257) Liability balance at December 31, 2019 383 Increase in liability 808 Reduction in liability (payments) (840) Liability balance at December 31, 2020 $ 351 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of composition of inventories | The composition of inventories is as follows (dollar amounts in thousands): As of December 31, 2020 2019 Raw materials $ 13,956 $ 13,329 Work in process 1,351 1,426 Finished goods 32,376 31,911 Total inventory $ 47,683 $ 46,666 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of composition of property, plant and equipment | The composition of property, plant and equipment is as follows (dollar amounts in thousands): As of December 31, 2020 2019 Land and improvements $ 363 $ 448 Buildings and improvements 32,324 32,374 Machinery and equipment 27,955 28,533 Furniture and fixtures 12,557 18,162 Computer software and hardware 56,838 52,837 130,037 132,354 Accumulated depreciation and amortization (75,682) (72,842) Total property, plant and equipment $ 54,355 $ 59,512 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of composition of accrued liabilities | The composition of accrued liabilities is as follows (dollar amounts in thousands): As of December 31, 2020 2019 Salaries and employee benefits $ 15,293 $ 11,265 Sales, use and property tax (See Note 14) 3,256 2,830 Convention and meeting costs 6,375 5,501 Other 6,786 5,935 Total $ 31,710 $ 25,531 |
REVOLVING CREDIT FACILITY AND_2
REVOLVING CREDIT FACILITY AND OTHER OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt | Future maturities of long-term debt at December 31, 2020 (dollar amounts in thousands): Year Ending December 31, 2021 $ 1,306 2022 1,244 2023 1,174 Thereafter — Total $ 3,724 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of components of accumulated other comprehensive income (loss), net of tax | The components of accumulated other comprehensive income (loss), net of tax, are as follows (dollar amounts in thousands): Foreign Currency Write-off of cumulative translation adjustments Total Balance as of January 1, 2019 $ (11,107) $ — $ (11,107) Activity, net of tax 477 (595) (118) Balance as of December 31, 2019 (10,630) (595) (11,225) Activity, net of tax 1,270 — 1,270 Balance as of December 31, 2020 $ (9,360) $ (595) $ (9,955) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of income from continuing operations before provision (benefit) for income taxes | Income from continuing operations before provision (benefit) for income taxes are taxed under the following jurisdictions (dollar amounts in thousands): Year Ended December 31, 2020 2019 Domestic $ 3,273 $ 1,770 Foreign 19,548 13,872 Total $ 22,821 $ 15,642 |
Schedule of components of the provision (benefit) for income taxes | Components of the provision (benefit) for income taxes for each of the two years in the period ended December 31, 2020 are as follows (dollar amounts in thousands): Year Ended December 31, 2020 2019 Current: Federal $ (1,056) $ (476) State 147 94 Foreign 5,129 4,816 Subtotal 4,220 4,434 Deferred: Federal (2,332) 3,044 State 52 475 Foreign (2,077) 760 Subtotal (4,357) 4,279 Total provision (benefit) for income taxes $ (137) $ 8,713 |
Schedule of differences between the statutory U.S. federal income tax rate and the provision (benefit) for income taxes, as a percentage of income before provision for income taxes | The provision (benefit) for income taxes, as a percentage of income from continuing operations before provision (benefit) for income taxes, differs from the statutory U.S. federal income tax rate due to the following: Year Ended December 31, 2020 2019 Statutory U.S. federal income tax rate 21.0 % 21.0 % State income taxes, net of U.S. federal income tax benefit 1.3 2.9 U.S. tax impact of foreign operations 6.7 12.3 Valuation allowance change (25.0) 10.3 Unrecognized tax benefits (6.1) (3.3) Permanent foreign items 3.1 4.4 Withholding tax on royalties 2.8 4.2 Stock compensation (0.4) 7.1 Tax return to provision differences (3.3) (3.7) Elimination of provision on intercompany transactions (2.0) (0.6) Other 1.3 1.1 Effective income tax rate (0.6) % 55.7 % |
Schedule of components of U.S. tax impact of foreign operations | Adjustments relating to the U.S. impact of foreign operations increased the effective tax rate by 6.7 percentage points in 2020 and increased the effective tax rate by 12.3 percentage points in 2019. The components of this calculation were: Components of U.S. tax impact of foreign operations 2020 2019 Foreign tax credits (4.0) % (6.3) % Foreign tax rate differentials 3.1 3.6 Foreign withholding taxes 2.8 3.9 Transfer pricing adjustment 4.3 4.6 Impact of GILTI 0.6 6.5 Impact of FDII (0.1) — Total 6.7 % 12.3 % |
Schedule of significant components of the deferred tax assets (liabilities) | The significant components of the deferred tax assets (liabilities) are as follows (dollar amounts in thousands): As of December 31, 2020 2019 Inventory $ 1,011 $ 1,013 Accrued liabilities 3,696 2,608 Operating lease liabilities 3,273 3,639 Deferred compensation 233 273 Equity-based compensation 1,332 1,127 Intangibles assets 149 161 Bad debts 102 92 Net operating losses 5,978 7,139 Foreign tax and withholding credits 14,453 14,640 Other deferred tax assets 1,933 2,178 Valuation allowance (15,262) (21,388) Total deferred tax assets 16,898 11,482 Accelerated depreciation (4,197) (3,168) Right of use assets (2,943) (3,315) Tax on unremitted earnings (2,318) (1,642) Other deferred tax liabilities (138) (113) Total deferred tax liabilities (9,596) (8,238) Total deferred taxes, net $ 7,302 $ 3,244 |
Schedule of components of deferred tax assets (liabilities), net | The components of deferred tax assets (liabilities), net are as follows (dollar amounts in thousands): As of December 31, 2020 2019 Net deferred tax assets $ 8,693 $ 4,899 Net deferred tax liabilities (1,391) (1,655) Total deferred taxes, net $ 7,302 $ 3,244 |
Schedule of reconciliation of the beginning and ending amount of liabilities associated with uncertain tax benefits, excluding interest and penalties | A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax benefits, excluding interest and penalties, is as follows for the years (dollar amounts in thousands): Year Ended December 31, 2020 2019 Unrecognized tax benefits, opening balance $ 1,385 $ 1,966 Settlement of liability reclassified as income tax payable — — Payments on liability — (16) Tax positions taken in a prior period Gross increases — — Gross decreases (106) (9) Tax positions taken in the current period Gross increases — 132 Gross decreases — — Lapse of applicable statute of limitations (1,210) (686) Currency translation adjustments (13) (2) Unrecognized tax benefits, ending balance $ 56 $ 1,385 |
CAPITAL TRANSACTIONS (Tables)
CAPITAL TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of stock option activity | Stock option activity for 2020 and 2019 consisted of the following (share amounts in thousands, except for per share information): Number of Weighted-Average Exercise Weighted-Average Options outstanding at January 1, 2019 1,114 $ 12.23 Granted 25 8.72 Forfeited or canceled (797) 12.87 Exercised (52) 4.98 Options outstanding at December 31, 2019 290 11.49 Granted — — $ — Forfeited or canceled — — — Exercised (64) 9.33 5.56 Options outstanding at December 31, 2020 226 $ 12.10 $ 5.42 |
Schedule of weighted-average assumptions using Black-Scholes option-pricing model for estimating fair value of each option granted | The fair value of each option grant was estimated on the date of the grant using the Black-Scholes option-pricing model with the following weighted-average assumptions for the years ended December 31, 2020 and 2019: 2020 2019 Weighted-average grant date fair value of grants $ — 3.44 Expected life (in years) 0.0 5.0 Risk-free interest rate — % 1.5 % Expected volatility — % 43.2 % Dividend yield — % — % |
Schedule of restricted stock unit activity | Restricted stock unit activity for the years ended December 31, 2020 and 2019 is as follows: (share amounts in thousands, except per share information): Number of Weighted-Average Units outstanding at January 1, 2019 1,058 $ 8.87 Granted 333 7.23 Issued (179) 10.21 Forfeited (391) 9.88 Units outstanding at December 31, 2019 821 7.43 Granted 691 5.84 Issued (301) 8.28 Forfeited (32) 11.93 Units outstanding at December 31, 2020 1,179 $ 6.18 |
OPERATING BUSINESS SEGMENT AN_2
OPERATING BUSINESS SEGMENT AND INTERNATIONAL OPERATION INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of reportable business segment information | Reportable business segment information for the years ended December 31, 2020 and 2019 is as follows (dollar amounts in thousands): Year Ended December 31, 2020 2019 Net sales: Asia $ 138,717 $ 138,536 Europe 77,688 62,523 North America 145,481 138,163 Latin America and Other 23,319 22,993 Total net sales 385,205 362,215 Contribution margin (1): Asia 66,801 65,871 Europe 26,014 19,954 North America 50,193 49,327 Latin America and Other 9,771 9,713 Total contribution margin 152,779 144,865 Selling, general and administrative (2) 131,297 128,740 Operating income 21,482 16,125 Other income (loss), net 1,339 (483) Income before provision for income taxes $ 22,821 $ 15,642 ___________________________ (1) Contribution margin consists of net sales less cost of sales and volume incentives expense. (2) Service fees in China totaled $11.7 million and $9.4 million for the years ended December 31, 2020 and 2019, respectively. These service fees are included in our selling, general and administrative expenses. Year Ended December 31, 2020 2019 Capital expenditures: Asia $ 542 $ 3,262 Europe 34 27 North America 4,267 2,605 Latin America and Other 62 21 Total capital expenditures $ 4,905 $ 5,915 Depreciation and amortization: Asia $ 1,919 $ 1,544 Europe 77 75 North America 8,673 8,855 Latin America and Other 74 125 Total depreciation and amortization $ 10,743 $ 10,599 As of December 31, 2020 2019 Assets: Asia $ 82,572 $ 65,959 Europe 16,398 15,187 North America 142,324 124,337 Latin America and Other 8,204 7,585 Total assets $ 249,498 $ 213,068 |
Schedule of consolidated net sales revenue by geographical locations | From an individual country perspective, only the United States and South Korea comprise approximately 10 percent or more of consolidated net sales for the years ended December 31, 2020 and 2019 as follows (dollar amounts in thousands): Year Ended December 31, 2020 2019 Net sales: United States $ 134,976 $ 128,019 South Korea 62,041 70,556 Other 188,188 163,640 Total net sales $ 385,205 $ 362,215 |
Schedule of revenue generated by each of the Company's product lines | Revenue generated by each of our product lines is set forth below (dollars in thousands): Year Ended December 31, 2020 2019 Asia: General health $ 36,445 $ 37,795 Immunity 847 940 Cardiovascular 40,496 44,541 Digestive 32,605 24,434 Personal care 10,606 13,753 Weight management 17,718 17,073 138,717 138,536 Europe: General health $ 32,822 $ 22,469 Immunity 8,231 5,130 Cardiovascular 10,863 10,672 Digestive 18,673 14,456 Personal care 4,663 7,463 Weight management 2,436 2,333 77,688 62,523 North America: General health $ 61,897 $ 59,847 Immunity 23,036 15,341 Cardiovascular 15,852 18,750 Digestive 32,851 33,077 Personal care 7,587 6,170 Weight management 4,258 4,978 145,481 138,163 Latin America and Other: General health $ 6,867 $ 6,919 Immunity 3,122 2,453 Cardiovascular 1,512 1,446 Digestive 9,863 10,258 Personal care 1,203 1,056 Weight management 752 861 23,319 22,993 Total net sales $ 385,205 $ 362,215 |
Schedule of consolidated property, plant and equipment by geographical locations | From an individual country perspective, only the United States comprise 10 percent or more of consolidated property, plant and equipment as follows (dollar amounts in thousands): As of December 31 2020 2019 Property, plant and equipment United States $ 50,025 $ 54,470 Other 4,330 5,042 Total property, plant and equipment $ 54,355 $ 59,512 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of the Company's hierarchy for assets measured at fair value on a recurring basis | The following table presents our hierarchy for assets measured at fair value on a recurring basis as of December 31, 2020 (dollar amounts in thousands): Level 1 Level 2 Level 3 Quoted Prices Significant Significant Total Restricted investment securities - trading $ 989 $ — $ — $ 989 Total assets measured at fair value on a recurring basis $ 989 $ — $ — $ 989 The following table presents our hierarchy for assets measured at fair value on a recurring basis as of December 31, 2019 (dollar amounts in thousands): Level 1 Level 2 Level 3 Quoted Prices Significant Significant Total Restricted investment securities - trading $ 1,150 $ — $ — $ 1,150 Total assets measured at fair value on a recurring basis $ 1,150 $ — $ — $ 1,150 |
SUMMARY OF QUARTERLY OPERATIO_2
SUMMARY OF QUARTERLY OPERATIONS - UNAUDITED (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of the Company's unaudited summary of quarterly operations | The following tables presents our unaudited summary of quarterly operations during 2020 and 2019 for each of three month periods ended March 31, June 30, September 30, and December 31 (dollar amounts in thousands, except per share information). For the Quarter Ended March 31, June 30, September 30, December 31, Net sales $ 95,926 $ 87,286 $ 100,250 $ 101,743 Cost of sales (24,681) (23,017) (27,175) (26,403) Gross profit 71,245 64,269 73,075 75,340 Volume incentives 33,018 29,165 34,310 34,657 Selling, general and administrative 31,065 28,504 33,294 38,434 Operating income 7,162 6,600 5,471 2,249 Other income (expense) (2,410) 1,509 671 1,569 Income before income taxes 4,752 8,109 6,142 3,818 Provision (benefit) for income taxes 1,746 1,976 (1,027) (2,832) Net income 3,006 6,133 7,169 6,650 Net income attributable to noncontrolling interests 44 379 414 784 Net income attributable to common shareholders $ 2,962 $ 5,754 $ 6,755 $ 5,866 Basic and diluted net income per common share: Basic earnings per share attributable to common shareholders: $ 0.15 $ 0.30 $ 0.35 $ 0.30 Diluted earnings per share attributable to common shareholders: $ 0.15 $ 0.29 $ 0.34 $ 0.29 For the Quarter Ended March 31, June 30, September 30, December 31, Net sales $ 91,272 $ 90,724 $ 88,524 $ 91,695 Cost of sales (23,429) (23,865) (22,784) (23,862) Gross profit 67,843 66,859 65,740 67,833 Volume incentives 31,013 31,302 29,862 31,233 Selling, general and administrative 33,852 31,019 31,177 32,692 Operating income 2,978 4,538 4,701 3,908 Other income (expense), net (48) 306 (1,243) 502 Income before income taxes 2,930 4,844 3,458 4,410 Provision for income taxes 1,201 2,215 2,107 3,190 Net income 1,729 2,629 1,351 1,220 Net income (loss) attributable to noncontrolling interests (28) (60) 34 218 Net income attributable to common shareholders $ 1,757 $ 2,689 $ 1,317 $ 1,002 Basic and diluted net income per common share: Basic earnings per share attributable to common shareholders: $ 0.09 $ 0.14 $ 0.07 $ 0.05 Diluted earnings per share attributable to common shareholders: $ 0.09 $ 0.14 $ 0.07 $ 0.05 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Operating lease right-of-use assets and liabilities | Information related to the Company's operating right-of-use assets and related operating lease liabilities were as follows (dollar amounts in thousands, except lease term and discount rate): As of December 31, 2020 2019 Assets: Operating lease right-of-use assets $ 20,210 $ 23,951 Liabilities: Current 4,992 4,941 Long-term 16,412 20,213 Total operating lease liabilities $ 21,404 $ 25,154 Weighted-average remaining lease term 6.3 7.0 Weighted-average discount rate 4.23 % 4.21 % Year Ended December 31, 2020 2019 Cash paid for operating lease liabilities $ 5,703 $ 6,147 Right-of-use assets obtained in exchange for new operating lease obligations (1) 1,996 29,883 Cancellations or adjustments of leases that resulted in the reduction of lease assets in exchange for lease liabilities $ (1,111) $ (486) (1) Balance as of December 31, 2019 includes $23.1 million for operating leases existing on January 1, 2019. |
Approximate aggregate commitments under non-cancelable operating leases | The approximate aggregate commitments under non-cancelable operating leases in effect at December 31, 2020, were as follows (dollar amounts in thousands): Year Ending December 31, 2021 $ 5,834 2022 4,077 2023 3,109 2024 2,917 2025 2,188 Thereafter 6,500 Total lease payments $ 24,625 Less: Imputed interest (1) 3,221 Present value of lease liabilities $ 21,404 (1) Calculated using our corporate borrowing rate based on the term of each lease ranging from 3.50 percent to 4.29 percent. |
NATURE OF OPERATIONS AND SIGN_4
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Property, Plant and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Buildings | Minimum | |
Property, Plant and Equipment | |
Estimated useful lives | 20 years |
Buildings | Maximum | |
Property, Plant and Equipment | |
Estimated useful lives | 50 years |
Building improvements | Minimum | |
Property, Plant and Equipment | |
Estimated useful lives | 7 years |
Building improvements | Maximum | |
Property, Plant and Equipment | |
Estimated useful lives | 10 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment | |
Estimated useful lives | 2 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment | |
Estimated useful lives | 10 years |
Computer software and hardware | Minimum | |
Property, Plant and Equipment | |
Estimated useful lives | 3 years |
Computer software and hardware | Maximum | |
Property, Plant and Equipment | |
Estimated useful lives | 10 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment | |
Estimated useful lives | 2 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment | |
Estimated useful lives | 5 years |
NATURE OF OPERATIONS AND SIGN_5
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Costs, Foreign Currency Translation, and Revenue) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Incentive Trip Accrual | ||
Convention and meeting costs | $ 6,375 | $ 5,501 |
Advertising Costs | ||
Advertising costs | 1,800 | 1,800 |
Research and Development | ||
Research and development expenses | $ 1,500 | $ 2,100 |
NATURE OF OPERATIONS AND SIGN_6
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Schedule of Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net income attributable to common shareholders: | ||||||||||
Net income | $ 5,866 | $ 6,755 | $ 5,754 | $ 2,962 | $ 1,002 | $ 1,317 | $ 2,689 | $ 1,757 | $ 21,337 | $ 6,765 |
Basic weighted-average shares outstanding (in shares) | 19,537 | 19,314 | ||||||||
Basic earnings per share attributable to common shareholders: | ||||||||||
Net Income (in dollars per share) | $ 0.30 | $ 0.35 | $ 0.30 | $ 0.15 | $ 0.05 | $ 0.07 | $ 0.14 | $ 0.09 | $ 1.09 | $ 0.35 |
Diluted Shares Outstanding: | ||||||||||
Stock-based awards (in shares) | 431 | 349 | ||||||||
Diluted weighted-average shares outstanding (in shares) | 19,968 | 19,663 | ||||||||
Diluted earnings per share attributable to common shareholders: | ||||||||||
Net income (in dollars per share) | $ 0.29 | $ 0.34 | $ 0.29 | $ 0.15 | $ 0.05 | $ 0.07 | $ 0.14 | $ 0.09 | $ 1.07 | $ 0.34 |
Potentially dilutive shares excluded from diluted-per-share amounts: | ||||||||||
Share-based awards (in shares) | 703 | 439 | ||||||||
Potentially anti-dilutive shares excluded from diluted-per-share amounts: | ||||||||||
Share-based awards (in shares) | 176 | 214 |
NATURE OF OPERATIONS AND SIGN_7
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Share-Based Compensation) (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Time-based stock options | Maximum | ||
Share Based Compensation | ||
Vesting period | 48 months | |
Performance based stock options operating income margins | ||
Share Based Compensation | ||
Operating income margin, one | 6.00% | |
Operating income margin, two | 8.00% | |
Operating income margin, three | 10.00% | |
RSUs | Minimum | ||
Share Based Compensation | ||
Vesting period | 12 months | |
RSUs | Maximum | ||
Share Based Compensation | ||
Vesting period | 36 months | |
RSUs | 2012 Stock Incentive Plan | ||
Share Based Compensation | ||
Vesting period | 1 year | 1 year |
RSUs | 2012 Stock Incentive Plan | Board of Directors | ||
Share Based Compensation | ||
Restriction period | 2 years | |
RSUs | 2012 Stock Incentive Plan | Minimum | ||
Share Based Compensation | ||
Vesting period | 12 months | |
RSUs | 2012 Stock Incentive Plan | Maximum | ||
Share Based Compensation | ||
Vesting period | 36 months |
REVENUE RECOGNITION - Narrative
REVENUE RECOGNITION - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)productCategorysegment | Dec. 31, 2019USD ($) | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||
Refund period | 90 days | |||||||||
Sales returns | $ 2,000 | $ 1,900 | ||||||||
Sales | $ 101,743 | $ 100,250 | $ 87,286 | $ 95,926 | $ 91,695 | $ 88,524 | $ 90,724 | $ 91,272 | $ 385,205 | 362,215 |
Number of principal categories of products | productCategory | 6 | |||||||||
Number of business segments | segment | 4 | |||||||||
Shipping and Handling | ||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||
Sales | $ 3,400 | $ 6,200 |
REVENUE RECOGNITION - Changes i
REVENUE RECOGNITION - Changes in Contract Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Change in Contract with Customer, Liability [Roll Forward] | ||
Outstanding at December 31, 2019 | $ 955 | $ 1,079 |
Increase (decrease) attributed to: | ||
Customer loyalty net deferrals | 7,370 | 4,969 |
Customer loyalty redemptions | (7,342) | (5,093) |
Outstanding at December 31, 2020 | $ 983 | $ 955 |
RESTRUCTURING RELATED EXPENSE_2
RESTRUCTURING RELATED EXPENSES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | $ 808 | $ 2,375 | |
Loss on write-off of cumulative translation adjustment | 0 | 595 | |
Restructuring Reserve | 351 | 383 | $ 265 |
Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | $ 800 | 2,400 | |
Selling, General and Administrative Expenses | Severance and termination benefits | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | $ 400 |
RESTRUCTURING RELATED EXPENSE_3
RESTRUCTURING RELATED EXPENSES (Restructuring Activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Reserve [Roll Forward] | ||
Liability balance at beginning of period | $ 383 | $ 265 |
Increase in liability | 808 | 2,375 |
Reduction in liability (payments) | (840) | (2,257) |
Liability balance at end of period | $ 351 | $ 383 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 13,956 | $ 13,329 |
Work in process | 1,351 | 1,426 |
Finished goods | 32,376 | 31,911 |
Total inventory | $ 47,683 | $ 46,666 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, plant and equipment | ||
Property, plant and equipment, gross | $ 130,037 | $ 132,354 |
Accumulated depreciation and amortization | (75,682) | (72,842) |
Total property, plant and equipment | 54,355 | 59,512 |
Depreciation expense | 10,400 | 10,500 |
Land and improvements | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 363 | 448 |
Buildings and improvements | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 32,324 | 32,374 |
Machinery and equipment | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 27,955 | 28,533 |
Furniture and fixtures | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | 12,557 | 18,162 |
Computer software and hardware | ||
Property, plant and equipment | ||
Property, plant and equipment, gross | $ 56,838 | $ 52,837 |
INVESTMENT SECURITIES (Narrativ
INVESTMENT SECURITIES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||
Restricted investment securities - trading | $ 989 | $ 1,150 |
Gain (loss) on trading securities | $ 100 | $ 200 |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Salaries and employee benefits | $ 15,293 | $ 11,265 |
Sales, use and property tax | 3,256 | 2,830 |
Convention and meeting costs | 6,375 | 5,501 |
Other | 6,786 | 5,935 |
Total | $ 31,710 | $ 25,531 |
REVOLVING CREDIT FACILITY AND_3
REVOLVING CREDIT FACILITY AND OTHER OBLIGATIONS (Details) | Jun. 11, 2020USD ($)borrowing | Apr. 21, 2020USD ($)payment | Jul. 11, 2017USD ($) | Dec. 31, 2020USD ($) | Nov. 19, 2020USD ($) | Apr. 14, 2020USD ($) | Dec. 31, 2019 |
Long-term debt | |||||||
Long-term debt | $ 3,724,000 | ||||||
Revolving credit agreement | Bank of America Credit Agreement | |||||||
Long-term debt | |||||||
Maximum borrowing capacity | $ 25,000,000 | ||||||
Line of credit facility, maximum borrowing capacity | $ 15,000,000 | ||||||
Line of credit facility, number of separate increases | borrowing | 3 | ||||||
Line of credit facility, maximum borrowing capacity, increase from additional borrowings, minimum per occurrence | $ 5,000,000 | ||||||
Annual commitment fee | 0.25% | 0.20% | |||||
Line of credit, outstanding | 0 | ||||||
Line of Credit | Banc of America Leasing and Capital, LLC, Credit Agreement | |||||||
Long-term debt | |||||||
Maximum borrowing capacity | $ 6,000,000 | ||||||
Line of credit, outstanding | 3,700,000 | $ 3,700,000 | |||||
Number of monthly payments | payment | 36 | ||||||
Monthly payments | $ 100,000 | ||||||
Line of credit, outstanding, current | $ 1,300,000 | ||||||
LIBOR | Revolving credit agreement | Bank of America Credit Agreement | |||||||
Long-term debt | |||||||
Margin on variable rate | 2.25% | 1.25% | |||||
Effective rate | 3.00% | 3.05% | |||||
LIBOR | Revolving credit agreement | Bank of America Credit Agreement | Minimum | |||||||
Long-term debt | |||||||
Margin on variable rate | 0.75% | ||||||
Indicative Index | Line of Credit | Banc of America Leasing and Capital, LLC, Credit Agreement | |||||||
Long-term debt | |||||||
Effective rate | 3.00% | ||||||
Notes Payable to Banks | Paycheck Protection Program | |||||||
Long-term debt | |||||||
Long-term debt | $ 0 | $ 5,400,000 |
REVOLVING CREDIT FACILITY AND_4
REVOLVING CREDIT FACILITY AND OTHER OBLIGATIONS - Schedule of Long-term Debt Maturities (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 1,306 |
2022 | 1,244 |
2023 | 1,174 |
Thereafter | 0 |
Total | $ 3,724 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Activity, net of tax | $ 1,270 | $ (118) |
Foreign Currency Translation Adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at the beginning of the period | (10,630) | (11,107) |
Activity, net of tax | 1,270 | 477 |
Balance at the end of the period | (9,360) | (10,630) |
Write-off of cumulative translation adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at the beginning of the period | (595) | 0 |
Activity, net of tax | 0 | (595) |
Balance at the end of the period | (595) | (595) |
Total Accumulated Other Comprehensive Loss | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at the beginning of the period | (11,225) | (11,107) |
Activity, net of tax | 1,270 | (118) |
Balance at the end of the period | $ (9,955) | $ (11,225) |
INCOME TAXES (Income (Loss) Fro
INCOME TAXES (Income (Loss) From Continuing Operations and Income Tax Benefit (Provision)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income from continuing operations before provision (benefit) for income taxes | ||||||||||
Domestic | $ 3,273 | $ 1,770 | ||||||||
Foreign | 19,548 | 13,872 | ||||||||
Total | $ 3,818 | $ 6,142 | $ 8,109 | $ 4,752 | $ 4,410 | $ 3,458 | $ 4,844 | $ 2,930 | 22,821 | 15,642 |
Current: | ||||||||||
Federal | (1,056) | (476) | ||||||||
State | 147 | 94 | ||||||||
Foreign | 5,129 | 4,816 | ||||||||
Subtotal | 4,220 | 4,434 | ||||||||
Deferred: | ||||||||||
Federal | (2,332) | 3,044 | ||||||||
State | 52 | 475 | ||||||||
Foreign | (2,077) | 760 | ||||||||
Subtotal | (4,357) | 4,279 | ||||||||
Total provision (benefit) for income taxes | $ (2,832) | $ (1,027) | $ 1,976 | $ 1,746 | $ 3,190 | $ 2,107 | $ 2,215 | $ 1,201 | $ (137) | $ 8,713 |
INCOME TAXES (Provision (Benefi
INCOME TAXES (Provision (Benefit) for Income Taxes as a Percent) (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Statutory U.S. federal income tax rate | 21.00% | 21.00% |
State income taxes, net of U.S. federal income tax benefit | 1.30% | 2.90% |
U.S. tax impact of foreign operations | 6.70% | 12.30% |
Valuation allowance change | (25.00%) | 10.30% |
Unrecognized tax benefits | (6.10%) | (3.30%) |
Permanent foreign items | 3.10% | 4.40% |
Withholding tax on royalties | 2.80% | 4.20% |
Stock compensation | (0.40%) | 7.10% |
Tax return to provision differences | (3.30%) | (3.70%) |
Elimination of provision on intercompany transactions | (2.00%) | (0.60%) |
Other | 1.30% | 1.10% |
Effective income tax rate | (0.60%) | 55.70% |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Anticipated change in unrecognized tax benefits | ||
U.S. tax impact of foreign operations | 6.70% | 12.30% |
Deferred tax assets, valuation allowance | $ 15,262,000 | $ 21,388,000 |
Decrease in valuation allowance, deferred tax asset | 6,100,000 | |
Foreign tax and withholding credits | 14,453,000 | 14,640,000 |
Net operating losses | 5,978,000 | 7,139,000 |
Unrecognized tax benefits that would impact effective tax rate | 100,000 | 1,500,000 |
Unrecognized tax benefits, income tax penalties and interest accrued | 36,000 | 100,000 |
Unrecognized tax benefits, income tax penalties and interest expense period decrease | 100,000 | 33,000 |
Unrecognized tax benefits, increase in period | 0 | 200,000 |
Unrecognized tax benefits, income tax penalties and interest expense | 0 | 100,000 |
Income tax benefit resulting from lapse of applicable statute of limitations | 1,300,000 | $ 800,000 |
Commissions and transfer pricing | Minimum | ||
Anticipated change in unrecognized tax benefits | ||
Increase in unrecognized tax benefits within the next twelve months | 0 | |
Commissions and transfer pricing | Maximum | ||
Anticipated change in unrecognized tax benefits | ||
Increase in unrecognized tax benefits within the next twelve months | 100,000 | |
Audits or the expiration of statutes of limitations in various foreign jurisdictions | Minimum | ||
Anticipated change in unrecognized tax benefits | ||
Decrease in unrecognized tax benefits within the next twelve months | 0 | |
Audits or the expiration of statutes of limitations in various foreign jurisdictions | Maximum | ||
Anticipated change in unrecognized tax benefits | ||
Decrease in unrecognized tax benefits within the next twelve months | 100,000 | |
Domestic Tax Authority | ||
Anticipated change in unrecognized tax benefits | ||
Decrease in valuation allowance, deferred tax asset | 2,700,000 | |
Foreign Tax Authority | ||
Anticipated change in unrecognized tax benefits | ||
Decrease in valuation allowance, deferred tax asset | 3,400,000 | |
Foreign tax and withholding credits | $ 14,100,000 |
INCOME TAXES (Components of U.S
INCOME TAXES (Components of U.S. Tax Impact of Foreign Operations) (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Foreign tax credits | (4.00%) | (6.30%) |
Foreign tax rate differentials | 3.10% | 3.60% |
Foreign withholding taxes | 2.80% | 3.90% |
Transfer pricing adjustment | 4.30% | 4.60% |
Impact of GILTI | 0.60% | 6.50% |
Impact of FDII | (0.10%) | 0.00% |
Total | 6.70% | 12.30% |
INCOME TAXES (Significant Compo
INCOME TAXES (Significant Components of Deferred Tax Assets (Liabilities)) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Significant components of the deferred tax assets (liabilities) | ||
Inventory | $ 1,011 | $ 1,013 |
Accrued liabilities | 3,696 | 2,608 |
Operating lease liabilities | 3,273 | 3,639 |
Deferred compensation | 233 | 273 |
Equity-based compensation | 1,332 | 1,127 |
Intangibles assets | 149 | 161 |
Bad debts | 102 | 92 |
Net operating losses | 5,978 | 7,139 |
Foreign tax and withholding credits | 14,453 | 14,640 |
Other deferred tax assets | 1,933 | 2,178 |
Valuation allowance | (15,262) | (21,388) |
Total deferred tax assets | 16,898 | 11,482 |
Accelerated depreciation | (4,197) | (3,168) |
Right of use assets | (2,943) | (3,315) |
Tax on unremitted earnings | (2,318) | (1,642) |
Other deferred tax liabilities | (138) | (113) |
Total deferred tax liabilities | (9,596) | (8,238) |
Total deferred taxes, net | $ 7,302 | $ 3,244 |
INCOME TAXES (Components of Def
INCOME TAXES (Components of Deferred Tax Assets (Liabilities), Net) (Details) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Deferred income tax assets | $ 8,693 | $ 4,899 |
Net deferred tax liabilities | (1,391) | (1,655) |
Total deferred taxes, net | $ 7,302 | $ 3,244 |
INCOME TAXES (Reconciliation of
INCOME TAXES (Reconciliation of Uncertain Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of the beginning and ending amount of liabilities associated with uncertain tax benefits, excluding interest and penalties | ||
Unrecognized tax benefits, opening balance | $ 1,385 | $ 1,966 |
Settlement of liability reclassified as income tax payable | 0 | 0 |
Payments on liability | 0 | (16) |
Tax positions taken in a prior period | ||
Gross increases | 0 | 0 |
Gross decreases | (106) | (9) |
Tax positions taken in the current period | ||
Gross increases | 0 | 132 |
Gross decreases | 0 | 0 |
Lapse of applicable statute of limitations | (1,210) | (686) |
Currency translation adjustments | (13) | (2) |
Unrecognized tax benefits, ending balance | $ 56 | $ 1,385 |
CAPITAL TRANSACTIONS Share-Base
CAPITAL TRANSACTIONS Share-Based Compensation (Details) - $ / shares | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2015 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cash dividend per common share (in dollars per share) | $ 0 | $ 0 | ||
2012 Stock Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized under the plan (in shares) | 1,500,000 | |||
Additional number of shares authorized under the plan (in shares) | 1,500,000 | |||
2009 Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized under the plan (in shares) | 400,000 |
CAPITAL TRANSACTIONS Stock Opti
CAPITAL TRANSACTIONS Stock Options Narrative (Details) $ / shares in Units, shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)boardMember$ / sharesshares | Dec. 31, 2018shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | shares | 0 | 25 | |
Number of board members granted options during period | boardMember | 2 | ||
Shares exercised (in shares) | shares | 64 | 52 | |
Granted (in dollars per share) | $ / shares | $ 0 | $ 8.72 | |
Weighted-average grant date fair value (in dollars per share) | $ / shares | $ 0 | ||
Outstanding options to purchase (in shares) | shares | 226 | 290 | 1,114 |
Time-based stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ | $ 0 | $ 100,000 | |
Unrecognized share-based compensation expense, options | $ | $ 0 | $ 0 | |
Time-based stock options | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 48 months | ||
Performance based stock options operating income margins | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Operating income margin, one | 6.00% | ||
Operating income margin, two | 8.00% | ||
Operating income margin, three | 10.00% | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value (in dollars per share) | $ / shares | $ 0 | $ 3.44 | |
Aggregate intrinsic values of options exercised | $ | $ 200,000 | $ 200,000 | |
Related tax benefit | $ | $ 100,000 | $ 100,000 | |
Outstanding options to purchase (in shares) | shares | 226 | 290 | |
Aggregate Intrinsic value, outstanding | $ | $ 700,000 | $ 100,000 | |
Expected volatility | 0.00% | 43.20% | |
2012 Stock Incentive Plan | Time-Based and Net Sales Revenue Performance-Based Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | shares | 0 | 25 | |
Granted (in dollars per share) | $ / shares | $ 8.72 | ||
Weighted-average grant date fair value (in dollars per share) | $ / shares | $ 3.44 | ||
2012 Stock Incentive Plan | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares exercised (in shares) | shares | 64 | 52 | |
Granted (in dollars per share) | $ / shares | $ 9.33 | $ 4.98 | |
Termination period | 10 years |
CAPITAL TRANSACTIONS Stock Op_2
CAPITAL TRANSACTIONS Stock Option Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Shares | ||
Options outstanding at the beginning of the period (in shares) | 290 | 1,114 |
Granted (in shares) | 0 | 25 |
Forfeited or canceled (in shares) | 0 | (797) |
Exercised (in shares) | (64) | (52) |
Options outstanding at the end of the period (in shares) | 226 | 290 |
Weighted-Average Exercise Price Per Share | ||
Options outstanding at the beginning of the period (in dollars per share) | $ 11.49 | $ 12.23 |
Granted (in dollars per share) | 0 | 8.72 |
Forfeited or canceled (in dollars per share) | 0 | 12.87 |
Exercised (in dollars per share) | 9.33 | 4.98 |
Options outstanding at the end of the period (in dollars per share) | 12.10 | $ 11.49 |
Weighted-Average Grant Date Fair Value | ||
Granted (in dollars per share) | 0 | |
Forfeited or canceled (in dollars per share) | 0 | |
Exercised (in dollars per share) | 5.56 | |
Options outstanding at the ending of the period (in dollars per share) | $ 5.42 |
CAPITAL TRANSACTIONS Black-Scho
CAPITAL TRANSACTIONS Black-Scholes Option-Pricing Model (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average grant date fair value (in dollars per share) | $ 0 | |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average grant date fair value (in dollars per share) | $ 0 | $ 3.44 |
Expected life (in years) | 0 years | 5 years |
Risk-free interest rate | 0.00% | 1.50% |
Expected volatility | 0.00% | 43.20% |
Dividend yield | 0.00% | 0.00% |
CAPITAL TRANSACTIONS Restricted
CAPITAL TRANSACTIONS Restricted Stock Units Narrative (Details) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($)installment$ / sharesshares | Dec. 31, 2019USD ($)installment$ / sharesshares | |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance period | 3 years | |
Expected volatility, minimum | 50.00% | |
Expected volatility, maximum | 55.60% | |
Risk free interest rate, minimum | 0.30% | |
Risk free interest rate, maximum | 2.90% | |
Share-based compensation expense | $ 3.8 | $ 2 |
Unrecognized share-based compensation expense, options | $ 1.3 | $ 1.1 |
Weighted-average period over which the remaining compensation expense is expected to be recognized | 8 months 12 days | |
Minimum statutory withholding requirements that the Company pays on behalf of its employees (in shares) | shares | 63 | 36 |
RSUs | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 12 months | |
Finnerty Model discount for lack of marketability | 12.00% | |
RSUs | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 36 months | |
Finnerty Model discount for lack of marketability | 12.70% | |
Performance-Based Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 0.9 | $ 0.6 |
Unrecognized share-based compensation expense, other than options | 1.2 | |
Performance-Based Restricted Stock Units (RSUs) | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized share-based compensation expense, other than options | $ 3 | |
2012 Stock Incentive Plan | RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 1 year | 1 year |
Granted (in shares) | shares | 691 | 333 |
Granted (in dollars per share) | $ / shares | $ 5.84 | $ 7.23 |
2012 Stock Incentive Plan | RSUs | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 12 months | |
2012 Stock Incentive Plan | RSUs | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 36 months | |
2012 Stock Incentive Plan | Time-based RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | 3 years |
Granted (in dollars per share) | $ / shares | $ 7.68 | $ 8.59 |
Number of monthly installments for vesting of stock awards | installment | 12 | 12 |
2012 Stock Incentive Plan | Performance-Based RSUs, Share Price | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Granted (in dollars per share) | $ / shares | $ 4.51 | |
2012 Stock Incentive Plan | Performance-based RSUs, Net Sales and EBITDA | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Granted (in dollars per share) | $ / shares | $ 4.38 | |
2012 Stock Incentive Plan | Board of Directors | RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restriction period | 2 years | |
Number of shares subject to restriction period (in shares) | shares | 82 | 95 |
CAPITAL TRANSACTIONS Restrict_2
CAPITAL TRANSACTIONS Restricted Stock Unit Activity (Details) - 2012 Stock Incentive Plan - RSUs - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Shares | ||
Units outstanding at the beginning of the period (in shares) | 821 | 1,058 |
Granted (in shares) | 691 | 333 |
Issued (in shares) | (301) | (179) |
Forfeited (in shares) | (32) | (391) |
Units outstanding at the end of the period (in shares) | 1,179 | 821 |
Weighted-Average Grant Date Fair Value | ||
Units outstanding at the beginning of the period (in dollars per share) | $ 7.43 | $ 8.87 |
Granted (in dollars per share) | 5.84 | 7.23 |
Issued (in dollars per share) | 8.28 | 10.21 |
Forfeited (in dollars per share) | 11.93 | 9.88 |
Units outstanding at the end of the period (in dollars per share) | $ 6.18 | $ 7.43 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Nonqualified deferred compensation plan | ||
Employer's matching contribution | 70.00% | |
Maximum contribution by employer as a percentage of employee's compensation | 5.00% | |
Vesting period of employer's contributions | 3 years | |
Contributions by employer | $ 0.9 | $ 1 |
Maximum percentage of annual salary and bonus that may be deferred | 100.00% | |
Period for payment of obligation upon separation, one | 3 years | |
Period for payment of obligation upon separation, two | 5 years | |
Deferred compensation plan assets | $ 1 | $ 1.2 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | 12 Months Ended | |
Dec. 31, 2020USD ($)claim | Dec. 31, 2019USD ($) | |
Commitments and contingencies | ||
Payment made to third party | $ 23,000 | $ 10,000 |
Payments for legal settlements | $ 0 | 2,000,000 |
Value-added tax assessments and other civil litigation | ||
Commitments and contingencies | ||
Minimum number of claims that the Company's insurance coverage may not be sufficient to cover | claim | 1 | |
Accrued litigation expense | $ 500,000 | |
Provision for losses | 0 | |
Value-added tax assessments and other civil litigation | Minimum | ||
Commitments and contingencies | ||
Estimate of possible loss | 0 | |
Value-added tax assessments and other civil litigation | Maximum | ||
Commitments and contingencies | ||
Estimate of possible loss | 300,000 | |
Non Income Tax | ||
Commitments and contingencies | ||
Accrued liabilities | 200,000 | 400,000 |
Non Income Tax | Minimum | ||
Commitments and contingencies | ||
Estimate of possible loss | 0 | |
Non Income Tax | Maximum | ||
Commitments and contingencies | ||
Estimate of possible loss | 2,600,000 | |
Product liability and employee medical claims | ||
Commitments and contingencies | ||
Accrued liabilities | 700,000 | 800,000 |
Accrued liabilities classified as short-term | $ 400,000 | $ 500,000 |
OPERATING BUSINESS SEGMENT AN_3
OPERATING BUSINESS SEGMENT AND INTERNATIONAL OPERATION INFORMATION (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2020segment | |
Segment Reporting Information [Line Items] | |
Number of business segments | 4 |
NSP Americas; NSP Russia, Central and Eastern Europe; and NSP China | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 3 |
Synergy WorldWide | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 1 |
OPERATING BUSINESS SEGMENT AN_4
OPERATING BUSINESS SEGMENT AND INTERNATIONAL OPERATION INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net sales: | ||||||||||
Total net sales | $ 101,743 | $ 100,250 | $ 87,286 | $ 95,926 | $ 91,695 | $ 88,524 | $ 90,724 | $ 91,272 | $ 385,205 | $ 362,215 |
Contribution margin: | ||||||||||
Total contribution margin | 152,779 | 144,865 | ||||||||
Selling, general and administrative | 38,434 | 33,294 | 28,504 | 31,065 | 32,692 | 31,177 | 31,019 | 33,852 | 131,297 | 128,740 |
Operating income | 2,249 | 5,471 | 6,600 | 7,162 | 3,908 | 4,701 | 4,538 | 2,978 | 21,482 | 16,125 |
Other income (loss), net | 1,569 | $ 671 | $ 1,509 | $ (2,410) | 502 | $ (1,243) | $ 306 | $ (48) | 1,339 | (483) |
Income from operations before provision for income taxes | 22,821 | 15,642 | ||||||||
Capital expenditures: | ||||||||||
Total capital expenditures | 4,905 | 5,915 | ||||||||
Depreciation and amortization: | ||||||||||
Total depreciation and amortization | 10,743 | 10,599 | ||||||||
Assets: | ||||||||||
Total assets | 249,498 | 213,068 | 249,498 | 213,068 | ||||||
Property, plant and equipment | ||||||||||
Total property, plant and equipment | 54,355 | 59,512 | 54,355 | 59,512 | ||||||
Selling, General and Administrative Expenses | ||||||||||
Contribution margin: | ||||||||||
Service fees | 11,700 | 9,400 | ||||||||
United States | ||||||||||
Net sales: | ||||||||||
Total net sales | 134,976 | 128,019 | ||||||||
Property, plant and equipment | ||||||||||
Total property, plant and equipment | 50,025 | 54,470 | 50,025 | 54,470 | ||||||
South Korea | ||||||||||
Net sales: | ||||||||||
Total net sales | 62,041 | 70,556 | ||||||||
Other | ||||||||||
Net sales: | ||||||||||
Total net sales | 188,188 | 163,640 | ||||||||
Property, plant and equipment | ||||||||||
Total property, plant and equipment | 4,330 | 5,042 | 4,330 | 5,042 | ||||||
Asia | ||||||||||
Net sales: | ||||||||||
Total net sales | 138,717 | 138,536 | ||||||||
Contribution margin: | ||||||||||
Total contribution margin | 66,801 | 65,871 | ||||||||
Capital expenditures: | ||||||||||
Total capital expenditures | 542 | 3,262 | ||||||||
Depreciation and amortization: | ||||||||||
Total depreciation and amortization | 1,919 | 1,544 | ||||||||
Assets: | ||||||||||
Total assets | 82,572 | 65,959 | 82,572 | 65,959 | ||||||
Asia | General health | ||||||||||
Net sales: | ||||||||||
Total net sales | 36,445 | 37,795 | ||||||||
Asia | Immunity | ||||||||||
Net sales: | ||||||||||
Total net sales | 847 | 940 | ||||||||
Asia | Cardiovascular | ||||||||||
Net sales: | ||||||||||
Total net sales | 40,496 | 44,541 | ||||||||
Asia | Digestive | ||||||||||
Net sales: | ||||||||||
Total net sales | 32,605 | 24,434 | ||||||||
Asia | Personal care | ||||||||||
Net sales: | ||||||||||
Total net sales | 10,606 | 13,753 | ||||||||
Asia | Weight management | ||||||||||
Net sales: | ||||||||||
Total net sales | 17,718 | 17,073 | ||||||||
Europe | ||||||||||
Net sales: | ||||||||||
Total net sales | 77,688 | 62,523 | ||||||||
Contribution margin: | ||||||||||
Total contribution margin | 26,014 | 19,954 | ||||||||
Capital expenditures: | ||||||||||
Total capital expenditures | 34 | 27 | ||||||||
Depreciation and amortization: | ||||||||||
Total depreciation and amortization | 77 | 75 | ||||||||
Assets: | ||||||||||
Total assets | 16,398 | 15,187 | 16,398 | 15,187 | ||||||
Europe | General health | ||||||||||
Net sales: | ||||||||||
Total net sales | 32,822 | 22,469 | ||||||||
Europe | Immunity | ||||||||||
Net sales: | ||||||||||
Total net sales | 8,231 | 5,130 | ||||||||
Europe | Cardiovascular | ||||||||||
Net sales: | ||||||||||
Total net sales | 10,863 | 10,672 | ||||||||
Europe | Digestive | ||||||||||
Net sales: | ||||||||||
Total net sales | 18,673 | 14,456 | ||||||||
Europe | Personal care | ||||||||||
Net sales: | ||||||||||
Total net sales | 4,663 | 7,463 | ||||||||
Europe | Weight management | ||||||||||
Net sales: | ||||||||||
Total net sales | 2,436 | 2,333 | ||||||||
North America | ||||||||||
Net sales: | ||||||||||
Total net sales | 145,481 | 138,163 | ||||||||
Contribution margin: | ||||||||||
Total contribution margin | 50,193 | 49,327 | ||||||||
Capital expenditures: | ||||||||||
Total capital expenditures | 4,267 | 2,605 | ||||||||
Depreciation and amortization: | ||||||||||
Total depreciation and amortization | 8,673 | 8,855 | ||||||||
Assets: | ||||||||||
Total assets | 142,324 | 124,337 | 142,324 | 124,337 | ||||||
North America | General health | ||||||||||
Net sales: | ||||||||||
Total net sales | 61,897 | 59,847 | ||||||||
North America | Immunity | ||||||||||
Net sales: | ||||||||||
Total net sales | 23,036 | 15,341 | ||||||||
North America | Cardiovascular | ||||||||||
Net sales: | ||||||||||
Total net sales | 15,852 | 18,750 | ||||||||
North America | Digestive | ||||||||||
Net sales: | ||||||||||
Total net sales | 32,851 | 33,077 | ||||||||
North America | Personal care | ||||||||||
Net sales: | ||||||||||
Total net sales | 7,587 | 6,170 | ||||||||
North America | Weight management | ||||||||||
Net sales: | ||||||||||
Total net sales | 4,258 | 4,978 | ||||||||
Latin America and Other | ||||||||||
Net sales: | ||||||||||
Total net sales | 23,319 | 22,993 | ||||||||
Contribution margin: | ||||||||||
Total contribution margin | 9,771 | 9,713 | ||||||||
Capital expenditures: | ||||||||||
Total capital expenditures | 62 | 21 | ||||||||
Depreciation and amortization: | ||||||||||
Total depreciation and amortization | 74 | 125 | ||||||||
Assets: | ||||||||||
Total assets | $ 8,204 | $ 7,585 | 8,204 | 7,585 | ||||||
Latin America and Other | General health | ||||||||||
Net sales: | ||||||||||
Total net sales | 6,867 | 6,919 | ||||||||
Latin America and Other | Immunity | ||||||||||
Net sales: | ||||||||||
Total net sales | 3,122 | 2,453 | ||||||||
Latin America and Other | Cardiovascular | ||||||||||
Net sales: | ||||||||||
Total net sales | 1,512 | 1,446 | ||||||||
Latin America and Other | Digestive | ||||||||||
Net sales: | ||||||||||
Total net sales | 9,863 | 10,258 | ||||||||
Latin America and Other | Personal care | ||||||||||
Net sales: | ||||||||||
Total net sales | 1,203 | 1,056 | ||||||||
Latin America and Other | Weight management | ||||||||||
Net sales: | ||||||||||
Total net sales | $ 752 | $ 861 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
China Joint Venture | ||
Related Party Transactions | ||
Joint venture ownership | 80.00% | |
Fosun Pharma | China Joint Venture | ||
Related Party Transactions | ||
Joint venture ownership, noncontrolling party | 20.00% | |
Subsidiaries | China Joint Venture | Fosun Pharma | ||
Related Party Transactions | ||
Due from related parties | $ 1,200,000 | $ 1,500,000 |
Subsidiaries | China Joint Venture | Notes Receivable | ||
Related Party Transactions | ||
Amount of related party transaction | 0 | 0 |
Due from related parties | $ 4,800,000 | 6,100,000 |
Related party transaction, rate | 3.00% | |
Subsidiaries | China Joint Venture | Notes Receivable | Fosun Pharma | ||
Related Party Transactions | ||
Amount of related party transaction | $ 0 | $ 0 |
FAIR VALUE (Details)
FAIR VALUE (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair value | ||
Restricted investment securities - trading | $ 989 | $ 1,150 |
Total assets measured at fair value on a recurring basis | 989 | 1,150 |
Level 1 - Quoted Prices in Active Markets for Identical Assets | ||
Fair value | ||
Restricted investment securities - trading | 989 | 1,150 |
Total assets measured at fair value on a recurring basis | 989 | 1,150 |
Level 2 - Significant Other Observable Inputs | ||
Fair value | ||
Restricted investment securities - trading | 0 | 0 |
Total assets measured at fair value on a recurring basis | 0 | 0 |
Level 3 - Significant Unobservable Inputs | ||
Fair value | ||
Restricted investment securities - trading | 0 | 0 |
Total assets measured at fair value on a recurring basis | $ 0 | $ 0 |
SUMMARY OF QUARTERLY OPERATIO_3
SUMMARY OF QUARTERLY OPERATIONS - UNAUDITED (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Net sales | $ 101,743 | $ 100,250 | $ 87,286 | $ 95,926 | $ 91,695 | $ 88,524 | $ 90,724 | $ 91,272 | $ 385,205 | $ 362,215 |
Cost of sales | (26,403) | (27,175) | (23,017) | (24,681) | (23,862) | (22,784) | (23,865) | (23,429) | (101,276) | (93,940) |
Gross profit | 75,340 | 73,075 | 64,269 | 71,245 | 67,833 | 65,740 | 66,859 | 67,843 | 283,929 | 268,275 |
Volume incentives | 34,657 | 34,310 | 29,165 | 33,018 | 31,233 | 29,862 | 31,302 | 31,013 | 131,150 | 123,410 |
Selling, general and administrative | 38,434 | 33,294 | 28,504 | 31,065 | 32,692 | 31,177 | 31,019 | 33,852 | 131,297 | 128,740 |
Operating income | 2,249 | 5,471 | 6,600 | 7,162 | 3,908 | 4,701 | 4,538 | 2,978 | 21,482 | 16,125 |
Other income (expense), net | 1,569 | 671 | 1,509 | (2,410) | 502 | (1,243) | 306 | (48) | 1,339 | (483) |
Total | 3,818 | 6,142 | 8,109 | 4,752 | 4,410 | 3,458 | 4,844 | 2,930 | 22,821 | 15,642 |
Provision for income taxes | (2,832) | (1,027) | 1,976 | 1,746 | 3,190 | 2,107 | 2,215 | 1,201 | (137) | 8,713 |
Net income | 6,650 | 7,169 | 6,133 | 3,006 | 1,220 | 1,351 | 2,629 | 1,729 | 22,958 | 6,929 |
Net income (loss) attributable to noncontrolling interests | 784 | 414 | 379 | 44 | 218 | 34 | (60) | (28) | 1,621 | 164 |
Net income attributable to common shareholders | $ 5,866 | $ 6,755 | $ 5,754 | $ 2,962 | $ 1,002 | $ 1,317 | $ 2,689 | $ 1,757 | $ 21,337 | $ 6,765 |
Basic and diluted net income per common share: | ||||||||||
Basic earnings per share attributable to common shareholders (in dollars per share) | $ 0.30 | $ 0.35 | $ 0.30 | $ 0.15 | $ 0.05 | $ 0.07 | $ 0.14 | $ 0.09 | $ 1.09 | $ 0.35 |
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 0.29 | $ 0.34 | $ 0.29 | $ 0.15 | $ 0.05 | $ 0.07 | $ 0.14 | $ 0.09 | $ 1.07 | $ 0.34 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)optionToRenew | Dec. 31, 2019USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease right-of-use assets | $ 20,210 | $ 23,951 | $ 23,100 | $ 23,951 |
Lease liability | 21,404 | 25,154 | ||
Operating lease, cost | 6,600 | |||
Operating leases, rent expense | 6,700 | |||
Short-term lease, cost | 400 | 200 | ||
Sublease income | $ 100 | 100 | ||
Asset retirement obligations incurred | 600 | |||
Asset retirement obligations settled | $ 300 | |||
Minimum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Options to renew | optionToRenew | 1 | |||
Lease extension, minimum term | 1 year | |||
Accounting Standards Update 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease right-of-use assets | 23,100 | |||
Lease liability | $ 24,000 |
LEASES - Assets and Liabilities
LEASES - Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Assets | ||||
Operating lease right-of-use assets | $ 20,210 | $ 23,951 | $ 23,100 | $ 23,951 |
Liabilities [Abstract] | ||||
Current portion of operating lease liabilities | 4,992 | 4,941 | ||
Long-term portion of operating lease liabilities | 16,412 | 20,213 | ||
Total operating lease liabilities | $ 21,404 | $ 25,154 | ||
Operating lease, weighted average remaining lease term | 6 years 3 months 18 days | 7 years | ||
Operating lease, weighted average discount rate | 4.23% | 4.21% | ||
Operating lease, payments | $ 5,703 | $ 6,147 | ||
Right-of-use asset obtained in exchange for operating lease liability | 1,996 | 29,883 | ||
Right-of-use asset obtained in exchange for finance lease liability, decrease due to canceled leases | $ (1,111) | $ (486) |
LEASES - Commitments Under Non-
LEASES - Commitments Under Non-Cancelable Operating Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2021 | $ 5,834 | |
2022 | 4,077 | |
2023 | 3,109 | |
2024 | 2,917 | |
2025 | 2,188 | |
Thereafter | 6,500 | |
Total lease payments | 24,625 | |
Less: Imputed interest | 3,221 | |
Present value of lease liabilities | $ 21,404 | $ 25,154 |
Operating lease, weighted average discount rate | 4.23% | 4.21% |
Minimum | ||
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
Operating lease, weighted average discount rate | 3.50% | |
Maximum | ||
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
Operating lease, weighted average discount rate | 4.29% |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for doubtful accounts receivable | ||
Movement in valuation and qualifying accounts | ||
Balance at Beginning of Year | $ 407 | $ 460 |
Provisions | 77 | 10 |
Amounts Written Off | (30) | (63) |
Amounts Recovered | 0 | 0 |
Effect of Currency Translation | 0 | 0 |
Balance at End of Year | 454 | 407 |
Allowance for sales returns | ||
Movement in valuation and qualifying accounts | ||
Balance at Beginning of Year | 298 | 329 |
Provisions | 2,029 | 1,843 |
Amounts Written Off | (1,989) | (1,872) |
Amounts Recovered | 0 | 0 |
Effect of Currency Translation | 13 | (2) |
Balance at End of Year | 351 | 298 |
Tax valuation allowance | ||
Movement in valuation and qualifying accounts | ||
Balance at Beginning of Year | 21,388 | 20,256 |
Provisions | (6,120) | 1,591 |
Amounts Written Off | 0 | (107) |
Amounts Recovered | 0 | (372) |
Effect of Currency Translation | (6) | 20 |
Balance at End of Year | $ 15,262 | $ 21,388 |